كتب : Omar AbdelAziz
Schaaf, who took over as Bremen manager from Felix Magath in 1999, should stay at Weserstadion until 2012.
The 48-year-old led Bremen to the UEFA Cup final last season, which saw them clinch the German cup title as well.
Bremen are currently fourth in the Bundesliga table, four points behind leaders Bayer Leverkusen.