The Board of Control for Cricket in India announced that the former India captain will continue to work as coach of India A and U-19 teams.
Dravid was first appointed as coach for the two teams in 2015 and under his leadership, the youngsters have achieved outstanding results, at home and away.
The former India captain was appointed mentor of Delhi Daredevils in March 2016. Earlier, it used to be a 10-month contract for the national team, and a two-month window for IPL.
Daredevils CEO Hemant Dua couldn't thank Dravid enough for the services rendered.
"It was an honour and privilege to have Rahul Dravid as mentor of the Delhi Daredevils over the last two years. We truly enjoyed our association and nurtured some great young talent together. We are sad that he will not continue with us as mentor as he chooses to serve India A as a coach.
"Being a true servant of cricket he believes he still has a lot to give back to the game and help nurture young India talent. We wish him all the best," Dua said.
The contract extension comes in the wake of historian and former Committee of Administrators (COA) member Ramchandra Guha's allegations about national coaches working for IPL franchises.
In Dravid's first assignment as coach, the 'A' side won the triangular series in Australia, which had South Africa as the third team.
He repeated that success with the Under-19 team, guiding them to the final of the World Cup in 2016.
"Over the last two years, Rahul Dravid has been instrumental in getting young talent into the mix who have proved their worth on the big stage," BCCI acting president C K Khanna said.
"We are glad to continue his services for the next two years and are sure that this is a bright sign for Indian cricket which will see many more young talents coming up in the future," he added.
BCCI acting secretary Amitabh Choudhary said that Dravid was instrumental in grooming the youngsters in the last two years.
"Rahul Dravid is known for the discipline and committment he brings to the table. He has been successful in grooming the youngsters in the last two years. I wish him all the very best for his assignments with the two teams for the next two years," Choudhary said.
Image: Rahul Dravid
Photograph: BCCI
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