The former St George Illawarra Dragons boss, whose initial three-year contract runs out at the end of the season, was known to be considering returning to the NRL and had been linked with the coaching vacancy at the Penrith Panthers.
But Huddersfield ended the speculation by announcing that Brown, Super League coach of the year in 2009, has signed a 12-month extension.
Giants managing director Richard Thewlis said: “This will be viewed as great news by everyone connected with our club and a wonderful fillip for us all as we enter the second half of the season sitting second in Super League and still in the Challenge Cup.
“Our progress under Nathan has been excellent and to have him as our head coach for a further season is simply marvellous.”
He performed an about-turn 12 months ago after initially announcing a return to Australia for family reasons after he saw out his contract.
Recently he said his latest decision would be influenced by his wife Tanya, who recently gave birth to their fourth child.