The St Kilda legend has overseen four campaigns at the Bulldogs, winning 17 games across that time and taking them to a second finals series last season.
Burke said he's excited for what the near future holds for the club, and understands the task at hand.
"To have another two seasons working with this group - it's probably hard to narrow down what excites me most," the Australian Football Hall of Famer said in a club statement.
"There's working with the actual players on their growth – we've been taking more steps forward each year, so what that end picture of success looks like excites me - but also just being part of the Western Bulldogs for another two seasons and getting to come here and work with great people.
"I'm under no illusion that my fifth and sixth seasons as coach comes with a bit more responsibility and expectations, but to have that is great.
"The fact that the Club has shown that faith in me is amazing."
Here to stay 😍
Two more seasons locked in for @Nathan3Burke!
— WesternBulldogs AFLW (@BulldogsW) February 16, 2023
The new contract will also see Burke move into a full-time role at the Kennel, giving him more time to work with the players and also plan ahead for the upcoming season.
He becomes the seventh full-time AFLW coach across the league.
Executive Director of Football Chris Grant said the Bulldogs have seen steady improvement during Burke's tenure thus far, and this should continue over the next two seasons.
"Under Nathan's tutelage, our AFLW team has continued to develop and improve, including making the AFLW finals in season seven. This was the first time since our inaugural premiership in season two, 2018," he said.
"Nathan is very invested in all players in the team, and the connections and trust they are building together provide a great foundation for them to achieve great things together over coming years.
"We're thrilled to have Nathan extending his tenure with us in a full-time capacity, and we look forward to our AFL Women's program continuing to improve over seasons eight and nine of the AFL Women's competition."
Season eight of AFLW will commence in the second half of this year.