Otago's winning twenty/20 campaign and much-improved performance in the Plunket Shield this summer meant the association was always going to be keen to secure his services for another stint.
''We have been very pleased with Vaughn's work and are thrilled that we can retain him for a further two years,'' Otago Cricket Association chief executive Ross Dykes said.
''This will allow Vaughn to further develop our growing bank of young talent and continue to keep the SBS Bank Otago Volts at the forefront of domestic cricket.
''His particular skills with bowling techniques have been evident in the emergence of Jacob Duffy, Blair Soper and Sam Blakley and the consistent successes of Jimmy Neesham, Neil Wagner and Ian Butler.''
Johnson said he was thrilled to be given the opportunity to continue working with the side.
''I think this group of players have the ability to go from being the good side we saw last season to a great side over the next few years.
''The development of this side is something I am very passionate about so, in the end, the decision to accept the extension was an easy one.''
Otago's twenty/20 title had been particularly pleasing, he said.
''The enjoyment I took from that, as well as the satisfaction of knowing the Otago public got a kick out of it, really reignited my passion for coaching.
''We have some unfinished business after coming so close in the Plunket Shield and it is those sort of challenges that drive our group.''
Otago finished second in the Plunket Shield but could have easily have won the tournament had it not been for a rare poor display with the bat on the last day of the competition.
