Walters was already on contract until the end of 2025, but AAP understands his new deal includes an upgrade and extension through to the end of the following year.
"I am very grateful for the opportunity to coach here and very grateful for the extension the Broncos have given us," Walters said.
"There is stability with our coaching and playing group and it is about winning trophies now. That is what I am here for.
"We have still got a lot of hard work ahead of us, and I will be part of that hard work. As a coach I can certainly be better as well.
"This is my second family, and I have a real passion to make the club great and one people are proud of."
Walters, a five-time premiership winner with the Broncos, inherited a side in disarray in 2021 after claiming their first wooden spoon under the leadership of Anthony Seibold.
Within three seasons, Walters took the Broncos to the grand final.
Wayne Bennett coached the club for 20 years and to six titles - but Walters aims to be at Brisbane's helm even longer.
"I want to go past Wayne. I will be 105 by then. I see myself here long term," he said.
"When I walked off the Sydney Olympic Stadium in 2000 (after captaining Brisbane's grand final win) my dream was to come back here and be the head coach of the Broncos and win premierships.
"The dream is alive but not finished yet."
Walsh, signed until the end of 2025, is an on-field talisman for the Broncos and the side's creative force with the ball.
Last year, the Queensland representative conjured up 26 try assists, 21 line breaks and 11 tries to fire the side to the grand final.
The Broncos intend to take Walsh off the market, with Walters confident that would happen.
"I feel the environment we are providing for Reece is the best one for him," Walters said.
"I don't like to comment too much on other people's contracts, but I would be surprised if Reece is playing somewhere else."
Walsh last spoke about a Broncos extension in Los Angeles in early March, ahead of the round-one clash with Sydney Roosters.
"I am sure all of that is going to get sorted out," he said at the time.
"I would like to secure some long-term stuff but ... I just have to let my footy do the talking.
"I am sure there will be a time when we sit down and have a conversation, and I look forward to it.
"I have my family down the road and lots of good mates. These (Broncos) boys are my family too now.
"I love the club, the staff and the fans. We are doing something really special here."
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