Saker, 47, took over as England bowling coach when Ottis Gibson became West Indies coach three and a half years ago after a period as player and coach with both Victoria and Tasmania in his native Australia.
Managing Director - England Cricket, Hugh Morris said: “David Saker has made - and continues to make - an enormous contribution to the success of the England team. Since joining us in May 2010 he has worked with - and developed - an outstanding bowling unit which has been key to winning two successive Ashes series, winning a global event and climbing to number 1 in the world.
“His contribution has been such that we are aware that other countries would dearly have loved David to be a part of their management group and that is why this announcement is so important.
“It is a great a boost on the first day of this Ashes campaign that we can confirm that David Saker has committed himself to the England cause until the end of summer of 2015 which includes two Ashes series, an ICC World T20 in Bangladesh, a home campaign against India and an ICC Cricket World Cup in Australia and New Zealand.”
David Saker commented: "I am delighted to have the opportunity to continue working with England. I have been privileged enough to have been involved in some memorable moments for English cricket over the last three and a half years and worked with some outstanding cricketers. Given the calibre of players in and around the side at the moment and the hunger and commitment from all involved I am very much looking forward to another very exciting period over the next couple of years starting with the immediate challenge of retaining the Ashes."