Tinkoff Saxo directeur sportif Steven de Jongh named Sagan as one of the 14 riders remaining with the team next season, alongside Alberto Contador in his final season.
"Alberto Contador will be our team leader and will focus on the Tour de France in 2016 while Peter Sagan will be the man that will captain Tinkoff-Saxo in the classics among other races," said de Jongh.
The multiple Tour de France green jersey winner and general darling of the peloton's future with Oleg Tinkov's team has been the subject of intense speculation in recent months, with rumours abounding that neither Sagan or Tinkov were happy with their working relationship. Sagan had been linked with a number of other teams, including Etixx-QuickStep.
It appears that the Slovakian and the Russian oligarch have buried the hatchet for now, and that Sagan's antics on and off the road - such as his daredevil descent on Stage 16 of this year's Tour - will be conducted in Tinkoff Saxo colours next year.
De Jongh also confirmed that Ivan Basso, Daniele Bennati, Maciej Bodnar, Pavel Brutt, Robert Kiserlovski, Roman Kreuziger, Rafal Majka, Sergio Paulihno, Michael Rogers, Ivan Rovny, Juraj Sagan and Michael Valgren will ride for the team next year - although Basso's future remains uncertain following his surgery for testicular cancer last month.
Further contract extensions and new signings will be announced throughout August, the team added.