Mark Carney has agreed to remain in his post as governor of the Bank of England until the end of January 2020.
Carney had originally been expected to step down from the role at the end of June 2019 - two years short of the usual eight-year term, but an exchange of letters between the governor and chancellor of the Exchequer Philip Hammond confirmed the seven-month extension.
Hammond said the decision would "support a smooth exit" from the EU.
A Canadian national, Carney became the first non-Briton to be appointed governor in the Bank’s 300-year history.
In his letter, the chancellor said: “Further to our discussions and those that I have had with the prime minister, I am writing to ask whether you would be able to extend your term as governor of the Bank of England to January 2020 to support a smooth exit of the United Kingdom from the European Union and an effective transition to the next governor.”
In his reply, Carney said: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit. Accordingly, I am willing to do whatever I can in order to promote both a successful Brexit and an effective transition at the Bank of England and I can confirm that I would be honoured to extend my term to January 2020.”
HM Treasury has also announced that Jon Cunliffe has been reappointed as deputy governor for financial stability for a second five-year term.