The 45-year-old Briton has been with the Italy-based outfit, who serve as a feeder for Red Bull's main team, for the past five years.
"Not only has he been adept at producing chassis-aero packages that are well regarded throughout the paddock, he has also shown the management skills necessary to get the most out of all the various departments," said team boss Franz Tost in a statement.
"I am therefore delighted that James will be with us for the foreseeable future."
(Reporting by Alan Baldwin, editing by Pritha Sarkar)
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