The All India Football Federation's (AIFF) Technical Committee decided to offer the Englishman an extension after a meeting held in Mumbai on Wednesday.
The members felt that the Indian Senior National Men's team met the dual strategic objectives of the AIFF by qualifying for the AFC Asian Cup 2019 as well as by consistently achieving a top 15 FIFA ranking amongst Asian countries in the recent past.
Accordingly, there was no reason for the AIFF not to offer a contract to Stephen.
The recommendation of the Technical Committee will be now forwarded to the AIFF Executive Committee for their final approval.
Constantine, who began his second spell in India in January 2015, is reportedly the highest-paid foreign coach in the country across sports.
According to media reports, he has asked for his salary revision from the football federation.
Under Constantine, the team has maintained an unprecedented winning streak of 13 matches, and reached a two-decade high rank of 97 after their performance in Asian Cup qualifying. (ANI)