Watford manager Adrian Boothroyd has signed a new three-year deal with the club.
Despite the Hornets' confirmed relegation from the Premiership, the board at Vicarage Road have demonstrated their belief in the 36-year-old by securing his services until 2010.
Boothroyd told the club's website: "I feel very fortunate to work with a chairman, chief executive and board who allow me to do the job I need to do.
"I was given my chance in 2005 and I think loyalty works two ways. I'm thrilled to be committing my immediate future to Watford - a club who I know can do great things."
The former Leeds coach was appointed by the Hertfordshire club in March 2005 as the long-term replacement for Ray Lewington, and he helped them to maintain their place in the Coca-Cola Championship that season.
Despite little being expected of his side he led them into the Coca-Cola Championship play-offs in his first full campaign in charge, and then saw them beat his former employers 3-0 in the final to clinch a place in this season's top flight.
Boothroyd added: "I'm a great believer in stability and it's important that our thinking goes beyond the short-termism you often see in football.
"We have great ambitions for this club and with continuity I only see good things for the future.
"This season, the way the fans have behaved towards me and the team has been very humbling.
"It's only right we give those people something to shout about once again and we will be working hard to do that."
Watford endured a difficult season on their return to the Premiership after six years in the Championship.
With only Sunday's visit of crisis-ridden Newcastle remaining, the Hornets have just five league wins to their name and were relegated with three games still to play.
Boothroyd did, however, lead his side to the semi-finals of the FA Cup and was widely praised for his unerring positivity in the face of Watford's league woes.
And chairman Graham Simpson revealed there was never any doubt about the board's "trust" in the Yorkshireman.
He said: "I am thoroughly delighted that we have been able to reward and at the same time secure the services of one of the country's brightest and most prodigious talents.
"Aidy has built a wonderful rapport with the fans and has worked really hard to make a success of Watford, and also understands everything that we stand for and believe in as a club.
"It is a sign of our intent and a sign of how much trust the board has in Aidy that we reaffirmed our commitment to him ahead of what promises to be a very exciting campaign for us next season.
"I believe that with solid foundations in place this club will continue to grow towards our ambitious targets, but our people are crucial to achieving this.
"Aidy has built an excellent reputation and is a coveted individual, which is why it is really important to further secure his future."