BAR and Honda have extended their Formula One partnership until at least the end of 2007.
Button is currently third in the world championship
"It provides enormous stability at a time when there are so many question marks around Formula One", team boss David Richards said of the deal.
Shoichi Tanaka, president of Honda Racing Development, added the Japanese company was committed to BAR and to winning the F1 championship.
The deal, covering engine and chassis development, will be reviewed in 2007.
Jenson Button is encouraged by engine supplier Honda's commitment to BAR and thinks their focus on reliability as well as power will help in the long term.
"Honda have been improving and they have been looking at reliability and strength," he said.
"Their goal is not just to have as much power as possible, which is good."
The Briton feels the weather at Hockenheim could play into his hands as he tries to end the dominance of world champion Michael Schumacher.
BAR run on Michelin tyres, which are traditionally good at Hockenheim and are believed to perform better in hot weather than Ferrari's Bridgestone rubber.
"If it stays hot it can only help us," said Button. "Hopefully it will stay dry."