He was retained in the senior selection panel, a decision made at the BCCI's 87th Annual General Meeting in Mumbai on Wednesday.
The Board of Control for Cricket in India also named a five-man selection panel as opposed to the Lodha panel's order to appoint three selectors.
Last year, Prasad was appointed as selector in place of Roger Binny from South Zone.
Gagan Khoda was also retained from the previous panel, while Devang Gandhi, Sarandeep Singh and Jatin Paranjpe are the three new additions.
The 41-year-old Prasad, hailing from Andhra Pradesh, played six Tests and 17 ODIs in his brief international career.
Of the remaining four, Khoda and Paranjpe do not have Test experience and have only played ODIs.
“The 87th AGM of the BCCI is being held today 21st September 2016 and the proceedings are being conducted for the compliance of statutory provisions under which the BCCI is constituted and also for ensuring that the day to day operations of the BCCI are not hampered particularly in view of the ongoing major national and international tournaments, commitments and is subject to the orders of the Hon’ble Supreme Court," BCCI said in a media release after the AGM.
BCCI secretary Ajay Shirke clarified that the best three candidates were selected from the huge number of entries that the Board received to join Khoda and Prasad.
“The selection process, for the first time we had thrown open an application process otherwise in the past it used to be just by members who used to come representing their associations, they used to recommend names and we used to see if they fit the criteria and they were appointed. This time we have gone through this process, we had a lot of people, a lot of applications came; we also got a first hand insight into what their ideas are, what they wish to do, and what their visions are,” Shirke said in Mumbai on Wednesday.
Image: M S K Prasad
Photograph: Hamish Blair/ALLSPORT
Why Kohli feels this season will be career-defining for players
India vs New Zealand: How the teams stack up
Why Kohli is unhappy with spidercams used for India-NZ Test
No comeback for Srinivasan, Thakur to represent BCCI at ICC
Shirke elected unopposed as BCCI secretary