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Gerardo Martino has agreed a new four-year contract to remain as coach of Paraguay, but could still leave the post after the Copa America.
Last week, the Argentine agreed terms to remain in charge of the team for another year, but he has now revealed he has reached a deal on a contract to 2014.
However, both sides will be able to review their position after the Copa America next year.
"We have agreed with (Paraguayan Football Federation president Juan Angel) Napout to continue through 2014, with the promise of a pause after the Copa America to sit down and review what has been done up to that point and decide whether we will complete the remaining three years," Martino told local radio in comments carried on the Paraguay Football Federation's website.
"The conclusion came sooner than expected," he added. "Here, in Rosario, all is good. I consulted with my family and decided to say yes and immediately talked with the president of the federation to confirm the issue."
Martino led Paraguay to the quarter-finals of the World Cup, and his performance saw him mentioned as a possible successor to Argentina coach Diego Maradona.
Now he will turn his attention to preparing for the Copa America, starting with a friendly against Costa Rica in August.
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Lionel Messi scored as Argentina retained top spot in the CONMEBOL qualifying zone with a 2-1 win in Chile, while Bolivia beat Uruguay 4-1.
Argentina moved top of the South American World Cup qualifying group after a 3-1 win over Paraguay, while Colombia thrashed Uruguay.
Lionel Messi is wary of the threat posed by Paraguay as Argentina aim to extend their five-match winning streak.
Paraguay have appointed Uruguayan Gerardo Pelusso as coach following the sacking of Francisco Arce.
Chile moved top of the South American World Cup qualifying section with a 2-0 win over Venezuela.