McCarthy went 49-35 over five seasons with the Cowboys. He led the Cowboys to a 1-3 record during three trips to the postseason. His contract with the Cowboys was set to expire this off-season.
McCarthy, who owns a 174-112-2 overall record, previously served as coach of the Green Bay Packers for 13 seasons. He led the Packers to a Super Bowl in 2010. The Packers fired McCarthy in 2018.
Despite his championship pedigree, McCarthy produced similar results as the previous three Cowboys coaches, who all provided regular-season success, but struggled in the playoff.
Under McCarthy, the Cowboys went 12-5 for three-consecutive seasons from 2021 through 2023, but failed to advance past the divisional round during each of those postseason trips.
Former Cowboys coach Jason Garrett, who was fired in 2020, went 85-64 in the regular season and 2-3 in the playoffs. Wade Phillips, who was fired in 2010, went 34-22 in the regular season and 1-2 in the playoffs. Bill Parcells, who resigned in 2007, went 34-30 in the regular season and 0-2 in the playoffs with the team.