The Athletics manager received a two-year contract extension Monday that takes him through the 2016 season after he led Oakland to a surprising AL West title last year.
Oakland became the first team in major league history to win a division or pennant after trailing by five games with less than 10 to play, sweeping three games against Texas to win the division over the Rangers.
Oakland lost to Detroit in the deciding game of its best-of-five AL division series. The A's ended a five-year stretch without a winning record or playoff berth, finishing 94-68 with a majors-best 14 walkoff wins by a young team and rotation of rookies.
The A's did it with a payroll of $59.5 million - lowest in the majors - and 12 rookies. Melvin was voted AL Manager of the Year.
The 51-year-old took over from the fired Bob Geren in June 2011. Melvin led the Diamondbacks to the NL West title in 2007 and also won 93 games in his rookie season with Seattle in 2003.
He received a three-year contract from Oakland late in the 2011 season.