Mauricio Pochettino's contract at Paris St Germain has been extended until 2023, the French club have announced.
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 Argentinian 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 all together, 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."