Jayasuriya handed in a letter of resignation to the nation's cricket authorities late on Saturday following their World Cup semi-final defeat to Australia.
But Charnika Munasinghe, media manager of the Board of Control for Cricket in Sri Lanka, said on Sunday, Jayasuriya had been persuaded to stay.
Munasinghe said: "Sanath has agreed to continue with the captaincy."
JAYASURIYA AS CAPTAIN
He will skipper the side in the Sharjah Cup, a triangular tournament involving Sri Lanka, Pakistan and South Africa, starting 1 April.
Jayasuriya had told state television on Saturday: "I have tendered my resignation to the minister of sports.
"With my decision I have given the selectors the chance to opt for a new captain with the 2007 World Cup in mind."
However, sports minister Johnston Fernando refused to accept the resignation.
"I appreciate Sanath's freedom to send in his resignation," he said.
HAVE YOUR SAY
"The authorities also have the freedom to reject or accept it."
The 33-year-old left-hander, one of the world's most exciting batsmen in recent years, took over the helm after Sri Lanka's disastrous showing in the 1999 World Cup.
In 2002, he became Sri Lanka's most successful Test captain ever, winning a record 10 consecutive Tests.
But in 2003, their World Cup campaign was criticised by many despite reaching the last four.
They were beaten by minnows Kenya in the group stage.