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The 68-year-old's contract with the Rugby Football League ran out after he guided England to the final of the 2017 World Cup.
The former Australia and Queensland coach won many admirers for the way he turned England into a competitive force after a dismal 2016 Four Nations, guiding them to a first World Cup final for 22 years.
"It was disappointing not to be lifting the World Cup last December but I mentioned about this squad being on a journey," said Bennett.
"I want to continue that journey because I firmly believe we can achieve something special together."
Bennett will be at the helm when the Great Britain team, which has been in cold storage since 2007, is revived next year with a tour of the southern hemisphere.