While the hurt of missing out on an Olympic medal is driving Hager to continue there are some players that will step away from the international scene.
"I am still having a chat to players about next year and their commitment," Hager says. "I think we have a very good core group.
"At this stage there are five that I know about from our group of 25 that might not be back. Obviously Kayla Whitelock is one of those and Emily Naylor, who have retired.
"I think this group has some huge potential. We have got some really good youth coming through."
High Performance Director Terry Evans said it was fantastic to secure the genuine world class coach, who has been in hot demand from other nations.
"We know Mark has fielded offers from other countries, so we're pleased to be able to confirm that he will lead the Black Sticks Women through to Tokyo," he said.
"Mark has been the key reason the programme has sustained success during his eight years as head coach of the Black Sticks Women, which is why he has been actively hunted by other countries.
"Retaining Mark signals a strong belief in the programme, and the potential within the programme going forward to the future. I think the athletes will take be encouraged to know Mark had options elsewhere but has chosen to remain with the Black Sticks."
Since taking over as coach Hager has progressed his side from a world ranking of 12th to their current spot at fifth.
Over the years he has guided the women to victory at the 2009 Champions Challenge, silver at the 2010 Commonwealth Games, bronze at the 2011 Champions Trophy, bronze at the Glasgow Commonwealth Games, runners up at December's World League Final and this year gold medal finishes at the Hawke's Bay Cup and International Hockey Open in Darwin.
