The Post Office has extended its deal to use the scandal-hit Horizon IT software until at least 2027.
However, the postal giant said it plans to agree a deal with a new supplier next year, as part of commitments to shift away from the Horizon technology.
The accounting system, run by Japanese firm Fujitsu, is at the centre of the long-running Post Office scandal, which saw around 1,000 people wrongly prosecuted and convicted throughout the UK between 1999 and 2015.
Fujitsu’s defective accounting system made it appear that money was missing at Post Office branches run by the sub-postmasters.
Some victims were sent to prison or financially ruined, others were shunned by their communities, and some took their own lives.
The Post Office has continued to use different versions of the software, despite the major scandal, which was highlighted in a major ITV drama last year.
On Monday, the Post Office confirmed that it extended its latest contract to use the software.
A Post Office spokeswoman said: “Post Office has agreed with Fujitsu a one-year bridging extension to the Horizon contract for the period April 1 2026 to March 31 2027.
“We are committed to moving away from Fujitsu and off the Horizon system as soon as possible.
“We are bringing in a different supplier to take over Horizon whilst a new system is developed, and this process is well under way.
“We expect to award a contract for a new supplier to manage Horizon by July 2026, according to current timelines.”
In recent years, the Post Office has invested in efforts to secure a new system, including a project called NBIT, where it attempted to design a new in-house alternative.
However, the project was ditched amid a major turnaround plan amid concerns over its cost.
