McCarthy after Sunday's heartbreak (Allsport).

By Neil Silver, PA Sport, Seoul

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Mick McCarthy has agreed to stay on as manager of the Republic of Ireland for a further two years.

Ireland's heroic World Cup campaign has persuaded the 43-year-old Yorkshireman to renew his contract and he remain in charge for the forthcoming Euro 2004 qualifying campaign.

McCarthy, who took over from Jack Charlton in February 1996, had intimated to FAI chiefs that he planned to step down after Ireland went out of the tournament in Korea and Japan.

He was left shellshocked by the Roy Keane saga which blighted the start of the trip to the Far East last month and was ready to walk away from his £300,000 a year job.

However, three main factors have since persuaded him to reconsider and stay on.

Firstly, the FAI backed him when he sent home former skipper Keane from Saipan after the Manchester United midfield star aimed a torrent of abuse at him during a team meeting.

Secondly, McCarthy was moved by the support he received from the travelling Irish fans throughout the tournament, particularly in the opening group match against Cameroon in Niigata.

Finally, Ireland's unbeaten run in the tournament, which saw them just miss out on a place in the quarter-finals after being beaten on penalties by Spain last night, has encouraged him to lead his talented young squad into the European Championships campaign.

An FAI spokesman said: "We are delighted that Mick has agreed to stay in charge for another two years.

"We were aware that he was seriously considering his position after the Roy Keane affair, and it is good for Irish football that he is staying on."

McCarthy has an impressive record as manager. Since the beginning of 1999 he has suffered just two defeats in 23 competitive matches, away to Iran and Croatia.

McCarthy is only the third manager the Republic have had in 22 years. Eoin Hand was followed by Charlton in 1986, ushering in the most successful period in Irish football history.

That tradition has been carried on by McCarthy and his players will arrive back home in Dublin on Tuesday to a heroes welcome.