Australia will retain coach Tim Nielsen until the end of the next Ashes series in England in 2013, the national cricket board said on Tuesday.
"Working closely with Ricky Ponting, team leadership, national players and team management, he has played an important role leading Australia through that transition," CA chief executive James Sutherland said.
"We have won eight of our last 10 Tests, are ranked number one in One-Day International cricket and reached the final of the most recent ICC T20 Championship with Tim as our national coach.
"In assessing this reappointment, it was important to CA to note the strong support for Tim in his role from players, team management and other cricket leaders in Australia's national talent pathway programme."
Australian captain Ricky Ponting said: "This reappointment is a fantastic step forward for Australian cricket and recognition for the hard work of Tim and his coaching staff since his tenure began.
"I look forward to continuing our close working relationship as this team enters a period of great importance, striving to reclaim the Ashes and secure a fourth successive ICC World Cup."
Nielsen's reappointment follows the recruitment of former captain Greg Chappell as Australia's first full-time selector and national talent development head on Monday.
Australia head to India next month to play the top-ranked test side in a two-match series starting in October followed by one-day internationals.
They kick off their home series with further limited overs matches against Sri Lanka before the first match of the Ashes at the Gabba in Brisbane on November 25.