Madrid - Athletic Bilbao have extended coach Ernesto Valverde's contract by a year until the end of the 2016-17 season, the club confirmed on Thursday.
"Athletic Club and coach Ernesto Valverde have signed a renewal of his contract that will keep him with the red and whites until June 30, 2017," Athletic said in a statement.
"I am very happy to be able to enjoy Athletic for another year," said Valverde.
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"I thank the club for the confidence they have shown in me to renew my contract."
Valverde is currently in the third year of his second spell at the club having also been in charge between 2003 and 2005.
Earlier this season he delivered the club's first trophy for 31 years with a 5-1 thrashing of European champions Barcelona in the Spanish Super Cup.
Athletic sit seventh in La Liga and have progressed to the last-16 of the Europa League where they face Gary Neville's Valencia.
Valverde, 52, is highly respected in Spain and had been rumoured as a possible successor to Vicente del Bosque as the national team coach after the European Championships later this year.