Huawei was initially given 90 days in May to work with American firms after the government placed the company on its Entity List, which prevents any business being done unless it is approved on a case-by-case basis.
That 90 days ran out in August and was extended again for a like period. Had it not been extended again, it would have run out on Monday.
In a statement, US Commerce Secretary Wilbur Ross said in a statement: "The Temporary General Licence extension will allow carriers to continue to service customers in some of the most remote areas of the US who would otherwise be left in the dark.
The US and China have been engaged in a trade war since last year, with tit-for-tat tariffs being imposed on various good by both Washington and Beijing.
In the event of a trade deal being reached before 16 February, the terms of the Huawei agreement are likely to change.
Numerous small Internet service providers who provide access to rural and regional customers in the US have Huawei equipment in use, due to its lower price and better functionality.
The latest 90-day extension is intended to help these providers who would otherwise face a big financial burden if they had to switch equipment.