The news was warmly received by Hatters fans on social media, who were thrilled to see the manager was staying put for the foreseeable future.
Writing on Twitter, @AlenObrez said: "The best NYD news ever..."
@chrismitch99: "Excellent news. He’s the reason we attract a lot of the players we do.
"If we could just tie Adebayo down on a longer term deal, that would be the ideal start to the year."
@tweetertucker: "I like it. The club have shown commitment and I think NJ knows we don’t want a revolving door like the club down the road.
"He understands what the club is about and sells it well to potential players.
"He is positive and works with what’s in front of him, unlike another Jones."
@TrondheimHatter: "I think its premature to sign him for 5 years.
"We still haven't really proved ourselves this season under Jones.
@ComsatHat: "Good move by the club."
@SlugaSzn: "One of the main positives I take from this is that most of our best signings say they were convinced as soon as they met with NJ and he sold them the project.
"He seems to be a massive draw for good recruitment."
@Jaswanarth: "That is what you call a contract extension!"
@PaulCarroll77: "Great start to 2022.
"We have been going in an upward direction for the last 8 years.
"Long may it continue #COYH."
@JonnyHatter: "Brilliant news to start the year with.
"Clear statement of intent.
"Well done all round #COYH."
@JasonLTFC: "MASSIVE!!! what a great start to the year."
On Facebook, Andrew Hill said: "More than happy that NJ has made that commitment.
"Happy the club offered him the opportunity too!
"We’re building on solid foundations. Power Court is happening and so will Premiership football...in due course! #COYH."
Vincent Mitchell added: "We are very lucky to have Nathan as our manager and he has rekindled his relationship with our fans.
"Not many managers get a 5 year plus contract, it shows the confidence that the CEO Mr Sweet and the board of directors have in him.
"Congratulations Nathan, you have deserved this long term contract for your dedication and hard work that you and all your team have put into the football club."