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The former Croatian international returned to Udinese in March, with the northeastern side just above the relegation zone.
Tudor had already saved them from relegation in 2017-18 with two wins in their last four games, and reissued the feat with five wins in 11 games.
Aged 41, the club's third coach this season, he signed a contract until the end of the 2019-2020 campaign.
With 55 caps for Croatia, the former defender played more than 100 times for Juventus between 1998 and 2007.
He also coached Hajduk Split, PAOK and Galatasaray.
Udinese finished the season in 12th position, five points above the relegation zone.
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