After previously stating the job was a four-year assignment, Jones' extended eight-year term will entrench his status as England's longest-serving head coach as he surpasses Sir Clive Woodward, who was at the helm from 1997 to 2004 which included the '03 World Cup success.
Jones last week joined other Rugby Football Union (RFU) executives in taking pay cuts of 25 per cent or more to offset the financial effects of the coronavirus pandemic. He is the highest paid coach in international rugby - thought to be earning in the region of £750,000 (NZD $1.5m) per year.
"The extension is a great honour for me, but in the current environment, it is only right to acknowledge what a difficult time the world is facing," Jones said from Japan where his wife is visiting family.
"We are all looking forward to a time when we can get back to playing rugby and use the sport as a force for good in bringing people back together.
"I never thought coming here four years ago I would be doing a second four years but the circumstances are right. Obviously it is important for the team that we keep improving and my focus will be solely on that."
Like all scheduled test matches, England's tour to Japan in July is highly unlikely but Jones has set his sights on the 2023 World Cup.
Jones began this year by saying he wants England to become "the greatest team the sport has seen" and he will eventually get the chance to put that aspiration to the test.
"Having done the four years, I felt the project hasn't been finished yet," he said in a conference call.
"At the end of the World Cup, you need to make an assessment of whether you can continue to develop the team and whether, as a coach, you can be effective.
"Therefore, the Six Nations for me was quite important. I wanted to make sure I could still have an effect on the team, still improve the team and I think I can do that so I think it's a good fit for me to continue."
RFU chief executive Bill Sweeney revealed a verbal agreement to extend Jones' contract was agreed immediately after last year's World Cup, but the coronavirus crisis delayed the announcement.
"We reached an understanding soon after returning from Japan but there were some things that we wanted to make sure worked for both sides," Sweeney said.
"We are delighted that Eddie will continue as head coach to run England's campaign to take us to the 2023 Rugby World Cup. His record since joining speaks for itself and he has proven why he is one of the best coaches in world rugby.
"The progress shown by England since 2015 has been indisputable and having fielded the youngest-ever team to play in a World Cup final, we know even more growth is possible. We are all excited by what this squad can do and having Eddie leading the team is very important to us."
"My thoughts and those of all of us at the RFU are with everyone impacted by Covid-19, both across the country at large but also within our own rugby union community. In exceptionally difficult times, we are pleased to be sharing some good news."
The RFU have, meanwhile, confirmed Newcastle Falcons will be promoted to the Premiership next season while Saracens will be relegated to the Championship for their repeat salary cap breaching punishment.
