The contract was due to expire in the first quarter of 2017.
The Home Office has extended its IT outsourcing contract with Japanese technology giant Fujitsu until April 2018.
It is the second time the department has extended the contract, which was initially signed in 2000 and was due to expire in the first quarter of 2017.
Fujitsu supplies the hardware and technical support to nearly 24,000 users, representing around 70% of the Home Office.
The department’s other main system integrator is Atos Origin, which provides the application software.
The Home Office said the new extension will help it ensure a smooth transition from long-term, high-value IT contracts with one supplier to various, smaller contracts.
A Home Office spokesperson said: “The Home Office is committed to delivering excellent services and value for money for the taxpayer. That’s why we are ending the culture of awarding large IT contracts to single suppliers and instead working towards smaller, more flexible agreements with a broader list of companies.
“As we make this change, it is important we ensure a smooth transition to these new services. We have therefore extended the transition period of our Fujitsu contract until April 2018.”
In 2014, the UK Government lost a £700m legal battle with Fujitsu’ over failed NHS IT project. It was revealed earlier this year that the dispute could drag on for a further two years.
The NHS handed out several contracts in efforts to digitise records, but cancelled its contract with Fujitsu in 2008 citing poor performance.
Fujitsu is planning to cut up to 1,800 jobs in the UK as part of its restructuring programme.
The company, which currently employs 14,000 people in the UK and Ireland, said the transformation programme is aimed at streamlining operations in order to remain competitive in the market and allow it to support customers in the era of digital transformation.