Russia's football team manager Fabio Capello on Friday signed a deal to extend his contract that will see him remain at the helm until the 2018 World Cup, which is being hosted by Russia.
He will be paid 9 million euros per year, Dozhd television reported.
Since Capello guided Russia to its first World Cup in 12 years in October, the country's football bosses have been seeking to retain the 67-year-old Italian for another four years.
"The signing of a contract extension with the Russian Football Union and the head coach of the national team Fabio Capello has taken place. The term of the agreement is through the end of the 2018 World Cup," the Russian FA announced on its website.
Contract talks with the former England boss had dragged on since October amid reports linking Capello with a return to club management, despite repeated assurances from Sports Minister Vitaly Mutko that a deal had almost been done.
Last month, Capello was linked with the Tottenham Hotspur job eventually taken by Tim Sherwood, but the Italian has insisted he never held talks with the North London club.
Capello was offered expanded powers to oversee Russia's youth teams in order to bring players through for the 2018 World Cup, should he sign a new contract.
Capello had shown interest in coaching Russia through to 2018, saying earlier this month that the tournament would be "the real thing" and Brazil 2014 was just a "rehearsal" by comparison.
Material from The Moscow Times is included in this report.