Lehmann is the third key figure at CA this year to be re-signed this year, joining chief James Sutherland and chairman of selectors Rod Marsh on new deals.
That's a clear sign the turmoil of last year's tour of India, when the team lost 4-0 and was embroiled in the homework saga, is well and truly behind the national team.
Former Test batsman Lehmann took over the top job in June last year when he replaced Mickey Arthur - who was sensationally axed on the eve of Australia's Ashes campaign in England.
Coach Darren Lehmann has developed a productive relationship with captain Michael Clarke. Photo: Getty
His new deal runs until June 30, 2017.
After losing that closely-fought series 3-0, Lehmann helped steer Australia to a 5-0 whitewash in the return series last summer.
Australia then beat South Africa 2-1 to temporarily clinch the No.1 Test ranking.
In Lehmann's 13 Tests as coach, Australia has held a first-innings lead 11 times.
Lehmann has famously repaired fractures within the team - which emerged during Arthur's reign - using his old-school, no-fuss methods.
He has also helped veteran players such as Chris Rogers and Brad Haddin rediscover their love for the game.
"Obviously I have huge gratitude to the board and the people who make those decisions," Lehmann told the CA website.
"And obviously the players have a bit of a say in that, I'd imagine, as well.
"It means we're going down the right path, which is pleasing.
"So now the challenge is to raise the bar, as we always talk about."
DARREN LEHMANN'S RECORD AS AUSTRALIA'S TEST COACH
- Played: 13
- Won: 7
- Lost: 4
- Drawn: 2