Deasy met with the school board for about four hours in a closed-door session on Tuesday. The board gave the superintendent a "satisfactory" evaluation.
"I'm very proud, as you all were, of what we have done for students and what we are going to continue to do for students. And I look forward to us as a team," Deasy said after the board's announcement.
There were a few outbursts from a few members of the public who did not want Deasy to stay.
Deasy's supporters and opponents had lined up earlier at the LAUSD headquarters to make last minute pleas to sway the board.
Deasy came on board two years ago with a very ambitious agenda. Some of his highest priorities included raising test scores, reducing truancy and improving the graduation rate.
Deasy has come under fire for his controversial proposal to equip every student in the nation's second largest school district with an iPad. The plan, which came with a $1 billion price tag, failed within days of launching after students figured out how to bypass the security settings.
One of the groups that pushed for Deasy's resignation was United Teachers of Los Angeles. They believe Deasy's leadership is not taking the district in the right direction. In an April poll from UTLA, the majority of its members had no confidence in his leadership.
UTLA reacted to Deasy's contract extention in a statement Tuesday night.
"It is unbelievable that the Board of Education has given John Deasy a 'satisfactory' evaluation and rewarded him by extending his contract through June, 2016, despite a clear message from LA's teachers and health and human services professionals that Deasy's leadership is anything but satisfactory," said UTLA President Warren Fletcher.
On the other hand, leaders from Los Angeles' philanthropic and entertainment communities sent a letter to the LAUSD school board Monday night urging them to do all they could to keep Deasy and what they call his student-centered agenda in place.