"We believe that John made good progress with the Blackcaps and we are delighted to retain him as the team's coach," New Zealand Cricket Chief Executive Justin Vaughan said in a statement on Tuesday.
"Our aim for the Blackcaps is to concentrate on building the depth of talent available to us and to further develop the skills of individual players."
Vaughan also confirmed John Wright had been appointed to a high performance role, Dayle Hadlee would take over as head bowling coach and Australian Mark O'Neill was the new batting coach.
(Writing by Julian Linden in Hanoi)