NEW YORK (Reuters) - Eastern Conference champions the Pittsburgh Penguins have agreed to a new three-year contract with head coach Michel Therrien, the club said on Friday.

Pittsburgh went 47-27-8 during the regular season and advanced to the Stanley Cup finals against the Detroit Red Wings before losing in six games.

"He had one year remaining on his previous contract, and we could have simply talked about an extension," general manager Ray Shero said in a statement on the team's website (http://penguins.nhl.com).

"But we thought that, based on the success we've had together, it was time to negotiate a new deal, starting with an increase in compensation for the 2008-09 season."

The contract keep Therrien behind the Penguins' bench through the 2010-11 season. Financial terms were not released.

Over the past two seasons, the Penguins' record under the 44-year-old Therrien is 94-51-19.

(Writing by Steve Ginsburg in Washington; Editing by Martin Petty)

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