Stannard, who is currently racing the Vuelta a España, has ridden for Team Sky since its inception in 2010, but has endured a difficult 2017 season, failing to pick up any top 10s in the Classics then missing out on selection for the Tour de France.
However the 30-year-old said that he was enjoying being back riding at the Vuelta and was already looking forward to next season.
"Obviously 2017 hasn’t gone how I wanted," Stannard said. "The Classics were disappointing, really. I was hoping to do a lot better and then getting ill and missing out on the Tour wasn’t ideal.
"But I’ve had a nice bit of time off, I’m delighted to be at the Vuelta and I want to play my part here. It’s been a while since I did this race, but Froomey has come here as the favourite so there’s a lot of responsibility on us.
"I’m thinking about next year now and pulling all the pieces together for that. I’ll sit down with Rod [Ellingworth] and go through it - pick this season apart and put a plan in for next year. Paris-Roubaix is the one I really I want to win and I need to try and get that right."
Ellingworth, Team Sky's performance manager, said that he was pleased to have Stannard commit his future to the team despite interest from rivals.
"I’m delighted that Ian is staying because I’ve been working with him for a long time. He’s been with us since day one and he is part of the family. He’s got some good friends in this team and I think he knows he’s supported really well.
"It’s really good news. These guys have got other options and there’s lots of teams interested, so it’s great that he’s staying with Team Sky."
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