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The Championship winners have reacted to links between their manager and Premier League giants Chelsea and Tottenham, agreeing a new five-year deal.
“Burnley and Turf Moor felt right pretty much from the start – so it also feels right to sign for the next five years,” he said.
“Together with the fans we have made Turf Moor a fortress again and continue to look forward to the future and the job of making Burnley better with every step.”
Chelsea had Kompany on their shortlist of candidates to take charge from the summer, along with Mauricio Pochettino, Ange Postecoglou and Julian Nagelsmann.
With Nagelsmann dropping out of the running, Pochettino is now set to take the reins at Stamford Bridge.
Tottenham were also linked with the Belgian, who starred for Manchester City during his playing days.
However, German coach Nagelsmann is among the frontrunners for that job along with ex-Barcelona boss Luis Enrique.
Burnley chairman Alan Pace added: “We are ecstatic Vincent has signed a new deal!
“He is the perfect fit for how we all see Burnley Football Club moving forward. An extraordinary leader, setting ever higher standards and driving our club to the levels we all want to achieve.”
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