Carney was originally scheduled to step down in June 2019, but U.K. Treasury chief Philip Hammond, the chancellor of the Exchequer, said in a letter to Carney that the.
In addition, the Treasury announced that Jon Cunliffe was reappointed for a second five-year term as deputy governor responsible for issues relating to financial stability.
In his acceptance letter, the Bank of England governor wrote: "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.
Bank of England's Mark Carney will extend his tenure as governor by seven months to ease the BOE's transition as Brexit nears.
Carney has led the Bank of England since July 2013, when he became the first non-Briton to take the top job at the central bank.
About 50 Conservative lawmakers discuss ousting UK Prime Minister Theresa May
A number at the meeting said they had already submitted letters of no confidence in May, the source told the BBC. We have wrapped a suicide vest around the British constitution - and handed the detonator to Michel Barnier.
Don't Be Fooled by Hurricane Florence Being 'Downgraded.' It's Still Very Dangerous
Heavy rains were forecast to extend into the Appalachians, affecting parts of Alabama, Tennessee, Kentucky and West Virginia. About 10 million people live in areas that were under either hurricane or tropical storm warnings and watches Thursday.
Canada trade deal 'imminently possible,' Freeland says
However, no specifics on the progress made towards reaching an agreement have been announced. Under U.S. trade negotiating laws, a text for that agreement is due by October 1.
The governor and Prime Minister have clashed in the past with May commenting in 2016 on how there would be "bad side effects" for Carney's monetary policy and Carney taking a negative view on the future of Brexit.
He had originally only meant to remain for five years after joining in 2013, but announced plans to stay an extra year four months after the Brexit Referendum in June 2016.
After Mr Carney signalled he was likely to stay last week, infuriated Brexiteers warned "Project Fear wouldn't be the same without Carney's regular Grim Reaper pronouncements".
Concerns have grown over recent months that the United Kingdom and European Union are potentially headed for a "no deal" Brexit which could well induce further significant market stresses, of which Sterling would likely bear the brunt.
Following the hearing, Mrs Morgan said: 'Stability is vital during this important period.
Mark Carney is sticking around for Brexit.
'You can't avoid that medium-term impact on real incomes, ' he added.