The Highlanders and New Zealand Rugby announced yesterday Joseph had committed to the Highlanders as head coach for the next two years.
Joseph (44) joined the franchise for the 2011 season and will have coached the side for six years at the end of his new contract in 2016.
Joseph is yet to take the Highlanders to the playoffs, although they sit fifth on the table this season and have a shot at making the finals.
Greg Cooper coached the Highlanders from 2004 to 2007, but no other coach has guided the side for more than three years.
The retention of assistant coaches Tony Brown, Scott McLeod and Jon Preston was yet to be confirmed, although Highlanders general manager Roger Clark said he was keen to keep the coaching team together.
Brown was still hammering out issues over his coaching with the Otago ITM Cup side.
Joseph looked a goner at the end of last year when huge expectation had been followed by a massive letdown, as the side limped to 14th position and won just three games.
But the Highlanders have bounced back this season and are right in the playoff hunt.
Clark, who had indicated earlier in the season he wanted Joseph to continue, said Joseph had developed into a very good coach over the past four years.
''The Highlanders are excited by the progress the coaching team has made in 2014, led by Jamie. We are very enthusiastic about where this coaching team can take the Highlanders in the future,'' Clark said.
''When Jamie first started with the Highlanders in 2011 the goal was to develop the Highlanders as an organisation and a team that the fans and stakeholders respected and supported.
''There is no doubt that Jamie has had a large influence on the Highlanders achieving this goal, and his commitment for another two years will assist the Highlanders to continue this momentum.''
Joseph said he was excited by the young group of players the team had this season and he was looking towards the future.
''I've got a great coaching team around me and we've worked hard this year to create the right environment,'' he said.
''I'm keen to keep this going into the next few seasons. I understand the responsibility that goes with being a head coach and I am looking forward to that challenge in the next two years.
''I also understand what rugby means to the people and communities in the South and I feel privileged to be the coach of a team that is showing some real promise.''
