Cricket Australia has announced that head coach Darren Lehmann has extended his contract until 2019, but is likely to depart when the deal expires.

The confirmation came one day after the Test side suffered a surprise defeat to Sri Lanka in the opener of a three-game series.

Since taking over in 2013, Lehmann has helped Australia become the world's top-ranked team in Test and ODI formats and has overseen a 5-0 thrashing of England in the 2013-14 Ashes series and a World Cup win.

"The board have actually seen that we are doing okay as such, barring the result in the Test [against Sri Lanka], but looking forward to the next few years in charge and hopefully getting some wins in the sub-continent, first and foremost on the agenda, but developing the side as we are," Lehmann told reporters. "We have a different coaching group now coming in and the players are refreshed and I am looking forward to the challenge.

"I suppose the big one on everyone's lips is the sub-continent - we certainly have to improve there. Ashes is a big home and away and, obviously, the World Cup. They are the big ones for us, as everyone knows, but you have got to try and win every games you play. For us, we just have to get better playing in all conditions."

When asked if his new contract would be his last as coach, Lehmann said "I would think it would be, yeah. I love the job, but it's a job you can't do forever either."

Australia's second Test against Sri Lanka will get underway next week.