It will take him at least to the end of the 1999 season and if that sounds a relatively short-term appointment it should be remembered that England face series against the West Indies, South Africa, Sri Lanka, Australia and New Zealand in that time, not to mention the 1999 World Cup.
So far under Lloyd the form of the national team has been as volatile as his own temperament. England have been very successful in one-day internationals, but as inconsistent as ever in Test matches. It is some indication of the severity of the challenges which lie ahead in the next 12 months to say that the tour to the Caribbean, where England have not won a series for 30 years, will almost certainly be the least demanding part of their programme.
The team's performance against a faltering West Indies - they duly went down by an innings to Pakistan in the first Test in Peshawar yesterday will undoubtedly have a knock-on effect on performances in the two major series against South Africa and Australia which follow and, as with football managers, Lloyd's own future will depend very much on the fortunes of his teams.
It is only realistic to point out that, despite this welcome vote of confidence in an original coach who cares passionately about his job, his predecessors, Illingworth and Keith Fletcher, did not reach the end of their terms.
There has, however, been a definite change for the better in the 19 months since Lloyd was appointed - John Emburey had been offered the job first despite a complete lack of coaching experience - and a notable switch of emphasis towards modern ideas in which physical fitness and mental preparation are deemed to be essential adjuncts to technical coaching in the nets. He has pursued these ideas doggedly in the face of much cynicism, not least from former Test players. Lloyd is 49 but he identifies much more with the 19-year-olds in the county game than the cricketers of his own generation.
He took over at the start of the 1996 season when the brief experiment with Illingworth as joint chairman of selectors and manager of the England team was swiftly abandoned.
In Mike Atherton, Lloyd had - and though it was a close run thing, still has - a captain with whom he sees eye to eye on almost everything. The darkest hours of their partnership to date were during the tour of Zimbabwe in the first half of last winter when, according to the great weight of objective opinion, their approach was badly awry.
The England and Wales Cricket Board's top brass warned Lloyd privately but without equivocation that any repeat of the emotional outburst after England had failed by one run to win the first Test in Bulawayo would lose him his job.
The coach and his team put that ill-fated tour behind them later in the winter and there was something to build upon by the end of last summer too, despite the failure to consolidate the great start against Australia. Clearly, this is the ECB view. Tim Lamb, the chief executive, said yesterday: ``There's no doubt that David has brought a real vitality to the role of England coach: the extension of his contract is well merited and will help to ensure the continuity that is so vital to the success of any team.''
The engaging 'Bumble' was equally upbeat: ``We now have a structure involving the selection, coaching and management of the team which can only be of benefit to everyone.''
Lloyd would still prefer direct employment of England players by the Board to ensure the right amount of rest, a balanced programme of net and match practice, and closer supervision of diet, fitness and all-round preparation. That reward will only be fully granted, perhaps, if he has pushed England higher than sixth in the Test rankings two years from now.