The German mentor has been rewarded for saving Maritzburg United from relegation in the Premier Soccer League.
He took the club from the bottom of the table and eventually finished in 14th place in the Absa Premiership.
Chairman Farouk Kadodia broke the news at the club’s end-of-season awards ceremony.
Middendorp returned to United for his third stint in December last year after dumping Free State Stars who were at the time doing well under his stewardship.
He is one of the well-traveled coaches around, having coached five PSL teams (three stints with Maritzburg) since arriving in South Africa over a decade ago.