Anderson (right) coached Saints to the treble in 2006

The former New Zealand Test coach was out of contract at the end of the coming season but has ended speculation linking him with a return to Australia.

"I am thoroughly enjoying all aspects of coaching at St Helens," he said.

"We've a great set of players with some excellent youngsters who'll compete for places over the next few seasons."

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The contract extension also means Anderson will not succeed Brian Noble as Great Britain's new full-time coach.

"My family is also settled in England and to extend my contract gives them and me added stability," he added.

"But it's non-negotiable. We'll be leaving the UK at the end of 2008."

Daniel has improved the team as a whole and every player individually since his arrival St Helens chairman Eamonn McManus

Anderson, who quit as Kiwi Test coach to succeed the sacked Ian Millward 18 months ago, was Super League coach of the year in 2006 after guiding Saints to a clean sweep of the major trophies.

He was also named coach of the year at the BBC Sports Personality Awards.

Under the former New Zealand Warriors boss, Saints have won 44 out of 53 matches and are firm favourites to retain their title in 2007.

"Daniel has improved the team as a whole and every player individually since his arrival 18 months ago," said St Helens chairman Eamonn McManus.

"Our seasoned internationals have improved and our promising youngsters have developed into internationals much earlier than expected.

"He has also instilled composure and discipline throughout the squad. It is a great shot in the arm, both for the Saints and for Super League that he will continue with us for at least a couple more seasons."