Gatland enjoyed a successful 12-year spell as Wales coach before leaving after the 2019 Rugby World Cup.
However, since returning for a second stint in charge when he replaced fellow countryman Wayne Pivac in December 2022, Gatland has overseen six victories and 18 losses in 24 Tests, a win ratio of just 25%.
Gatland managed only one win in the 2023 Six Nations, but the former British and Irish Lions coach did galvanise the Wales squad to reach the quarter-finals of the 2023 World Cup.
Wales' last Test win came against Georgia in the World Cup pool stages in October 2023, before defeat by Argentina in the last eight of that tournament.
In 2024, Wales finished bottom of the Six Nations for the first time in 21 years and lost 11 games overall. It was the first time Wales' men's side had not managed an international win in a calendar year since 1937.
Wales have slipped to a World Rugby ranking low of 11th, with Gatland having been at the helm when they reached top spot in the build-up to the 2019 World Cup.
"I've been honest in terms of welcoming scrutiny and challenge. As well as that I understand the pressures of international rugby with performances and results," said Gatland.
"I am pleased to have the support of Abi and the board to take the squad into the Six Nations.
"This group of players has a huge amount of potential and we will be working incredibly hard together to turn around our fortunes on the pitch.
"We know, more than ever, we will be judged on competitiveness, on success and on winning during the 2025 campaign."