Mike Bianchi's recap of the NCAA Tournament game between Florida and Pittsburgh at Amway Center.
Donovan agreed to the contract last June and signed it in February, according to a UF spokesman.
The deal will pay him $3.93 million this season and $3.68 million in the remaining years of the contract. The bump this year is due to a longevity bonus. The annual average salary during the contract will be $3.72 million.
The top-ranked Gators will face UCLA at 9:45 p.m. on Thursday night during the South Regional in Memphis. It marks UF's fourth straight trip to the Sweet 16, the nation's longest current stretch.
The Gators (34-2) are riding a school-record 28-game winning streak and are the oddsmakers' favorite to win the school's third national championship.
UF has appeared in the NCAA Tournament 14 times during Donovan's 18 seasons after the school had made the Big Dance just three times prior to his arrival from Marshall for the 1996-97 season.
The Gators have won six SEC regular-season titles, including three of the past four, and four SEC Tournament titles. UF won both this season.
Donovan signed a three-year extension in December of 2011, adding to the six-year deal he signed in 2007 after he decided to back out of a job coaching the Orlando Magic.
Donovan's base salary will remain $220,000, with the rest of his money coming from activities agreement that includes television and radio programs/sponsorships and his agreement with Nike.
Donovan also has picked up $225,000 in bonuses this season, and could make more if the Gators continue to advance in the NCAA Tournament.
Donovan earned $75,000 for his team reaching the Sweet 16, $50,000 for winning the SEC regular-season title, $25,000 for the SEC tournament title, $50,000 for finishing in the top-10 of the final Associated Press poll and $25,000 for being named AP's Southeastern Conference coach of the year.
The NCAA Tournament bonus would increase to 100,000 for making the Final Four and $150,000 for winning the national championship.
During last week's NCAA Tournament rounds in Orlando, Donovan discussed his future in coaching, including a possible return to the NBA.
"Who knows? … I don't have a crystal ball," he said. "They may get sick of me at Florida and want me to move on. But I don't like coming out making bold predictions or statements. I would say right now, I'm happy with my life at the University of Florida."