Mauricio Pochettino's contract at Paris Saint-Germain has been extended until 2023.
The former Tottenham manager signed an 18-month deal with the option of an extra year when he took charge at the Parc des Princes in January.
That option has now been taken up after a summer in which the Argentine was linked with both Real Madrid and a return to Spurs.
Pochettino, a former PSG captain, led the club to success in the French Cup last term but they were pipped to the league title by Lille and beaten in the Champions League semi-finals by Manchester City.
The 49-year-old, who has also managed Espanyol and Southampton, said: "I'm really very happy, for myself and also for my staff.
"It's very important for us to feel the confidence of the club and we will give our maximum so that the supporters are proud of Paris St Germain.
"That's why we will try and reach our objectives altogether, as one. Twenty years ago I was captain of this club and today I am the coach. It's a dream come true."
Nasser Al-Khelaïfi, the club's chairman and chief executive, said: "With Mauricio's leadership, we're excited and confident about what the future holds."
Paul Pogba is 'increasingly unlikely' to sign a new contract extension at Manchester United amid interest from Paris Saint-Germain.
Talks between Pogba's representatives and United failed to find a resolution with reports claiming a concrete offer had been rejected by the France midfielder.
The 28-year-old has entered the final year of his current deal and United must now make a decision on whether to sell him this summer or allow him to see out his contract.
Paris Saint-Germain are interested in signing Pogba - but as yet, there has been no official bid or club-to-club contact.
Pogba, who can sign a pre-contract agreement with a foreign club in January, wants to assess all his options before deciding on what is likely to be the last big contract of his career.