Kumar's name, a 1984-batch IPS officer, was cleared for extension by the Appointments Committee of Cabinet (ACC) today.
According to the order, the ACC approved the proposal sent by the Union Home Ministry for granting the extension to Kumar in view of the prevailing law and order situation in the state.
Kashmir Valley has seen widespread violent protests since July 9, a day after Hizbul Mujahideen commander Burhan Wani was killed in an encounter with the security forces. 82 people, including two policemen, have been killed in the violence.
The Cabinet at the same time put S P Vaid, who is tipped to succeed Kumar, as Director General in-charge of Law and Order and Coordination.
Kumar was appointed chief of the state police in May 2014 and was due to retire at end of this month.
This is for the first time that a police chief has been given an extension by the state government since the beginning of militancy in 1990.