According to 'Jang' newspaper, Khan said he had met with Nawaz Sharif in London to discuss his future as well as cricket matters.
"The PM told me I should carry on working as Chairman of the Board and I have agreed to do that until August 2017," Khan said.
The PCB chief had earlier indicated in an interview to PTI last month that he might step down after completing two years in office in August this year.
"I try to consult with Najam and we take collective decisions but in the end as Chairman all responsibility for decisions taken is on me," he added.
Khan is in his second tenure as PCB Chairman having served in this position between 2003-2006. In his first tenure, he managed to convince India to tour Pakistan after 14 long years.