Sutherland has been CEO of CA since June 2001, when he replaced Malcolm Speed at the age of 35.
The 49-year-old's deal was set to come to end following the 2015 ICC Cricket World Cup, but he is now set to continue for the foreseeable future after it was agreed he would remain on an "ongoing employment arrangement".
CA chairman Wally Edwards stated that the new arrangement is down to "the outstanding job James is doing leading Australian cricket."
Edwards added: "As a board, we want James to continue his work leading Australian cricket, with the aim to be the number one sport for viewership, fan passion, participation, team success and to be a completely unified national sport."
Sutherland is elated to be staying in the role and stated he still has plenty to offer Australian cricket.
"I'm very grateful to the board for the confidence and faith it has showed in me to continue as CEO beyond next year," he said.
"That confidence is really a reflection of the great work being carried out by CA staff and those at state and territory associations who strive each day to make cricket great.
"It is a huge honour to lead the game and I'm as passionate as I have ever been to deliver on our strategy of making cricket Australia's favourite sport."