The Workers' Registration Scheme means workers from Poland, The Czech Republic, Slovakia, Slovenia, Hungary, Estonia and Lithuania must register with the UK Border Authority (UKBA) in their first year of employment in the UK.
The UKBA claims the scheme enables the Government to monitor the work A8 nationals do, and where in the country they do it, to better plan for local services and ensure migration benefits the UK labour market.
The decision comes following advice from the Migration Advisory Committee.
Borders and immigration minister Phil Woolas said: "Migration only works if it benefits the British people, and we are determined to make sure that is what happens.
"That is why I am delighted to announce we are keeping in place restrictions which mean we can continue to count how many people are coming here, and which limit Eastern Europeans' access to benefits."
But Tom Hadley, director of external relations at the Recruitment and Employment Confederation (REC), said: "Extending the scheme is unlikely to impact on the number of migrants from certain European countries. What it does do is add administrative burdens on recruitment agencies at a time when they should be putting their energies into what they do best, placing people in work.
"The REC is disappointed the Home Office has waited until the last minute to make this decision, thus creating further disruptions to agencies that need to plan for this change. We call upon the Home Office to put its house in order and start making immigration decisions within a timeframe that is realistic for business planning."
According to UKBA, the number of migrant workers coming to the UK from Eastern Europe has fallen dramatically, with 53,000 in the third quarter of 2007, compared with 29,000 for the same period last year.
Eastern European migrant workers must still register with UK Borders Authority
The Government has decided not to scrap the strict working regulations for migrant workers coming to Britain from Eastern Europe
