Unai Emery has agreed a one-year contract extension as Valencia coach, with the club rewarding him for guiding them into the Champions League.
Doubts surrounded the future of the 39-year-old, but Emery put an end to the speculation by signing a new deal until June 30, 2012.
Emery, who joined Valencia from Almeria in 2008, led Valencia to third place in La Liga this season despite having to sell star Spanish internationals David Villa and David Silva.
"I am very happy to stay on for one more year at one of the best clubs in the world," Emery said on Valencia's official website.
"I always said my intention was to stay and continue developing this project. Our objective is to improve. We are going to have a great team that will bring us a lot of joy."
Valencia president Manuel Llorente paid tribute to the work of Emery under difficult financial constraints.
"Unai (Emery) has proven himself and qualifying directly for the Champions League is very valuable," said Llorente.
"Unai is very ambitious and we appreciate his desire to improve and his ability to do just that. We want to grow and be better every year."