The Saints have extended their alignment with the Zebras until the end of 2015 after signing on with the VFL club in 2009.
Both clubs will look to establish their own VFL teams from 2016 onwards at the expiration of the newly signed agreement.
"The objective for both St Kilda and Sandringham to field stand-alone VFL teams from 2016 would mean that there is a clear development pathway for players of each respective club," St Kilda head of football Chris Pelchen said.
"In the meantime, our partnership continues to be an important part of St Kilda's development program and we remain committed to bringing success to Sandringham in the VFL competition."
The Saints have plans in place to develop the club's former training base in Linton Street, Moorabbin, into a community hub.
One of their key objectives is for the standalone VFL team to play home games at the club's spiritual home.
The Saints moved to its Seaford base in 2011.
Their alliance with the Zebras was strengthened in 2012 following the dual appointment of Simon McPhee as the VFL club's coach and as a St Kilda development coach.
Sandringham general manager John Mennie said the affiliation between the two clubs would continue to be beneficial for both parties.
"This renewed agreement will ensure that both Saints players and Sandy players are afforded the best opportunity to play at VFL level," Mennie said.
Collingwood, Essendon and Geelong already have standalone VFL teams while Richmond and the Western Bulldogs – with their team to be known as Footscray – will join the competition in 2014.
Twitter: @AFL_JenPhelan
