A Nilsson mean-field plus extended pairing interaction Hamiltonian with many-pair interaction terms is proposed. Eigenvalues of the extended pairing model are easy to obtain. Our investigation shows that one- and two-body interactions continue to dominate the dynamics for relatively small values of the pairing strength. As the strength of the pairing interaction grows, however, the three- and higher many-body interaction terms grow in importance. A numerical study of even-odd mass differences in the (154-171)Yb isotopes shows that the extended pairing model is applicable to well deformed nuclei.