University trustees approved the deal extending through April 30, 2018 on Friday.
The contract includes $20,000 bonuses for winning a Southeastern Conference regular season title and another $20,000 for making the NCAA tournament.
Curry will receive $20,000 bonuses for each of her first two seasons if Alabama makes the Women's NIT or finishes among the top seven teams in the SEC standings.
The Crimson Tide hasn't made the NCAA tournament since 1999.
Curry was hired in May after seven seasons as head coach at both Texas Tech and Purdue. She led Purdue to the 2001 national championship game.
Her contract includes a $245,000 base salary and a $145,000 talent fee.