England coach Fabio Capello has signed an amended contract, committing him to the job until Euro 2012.
The amendment removes a clause allowing the 63-year-old to leave after the World Cup, and ends Inter Milan's hopes of naming Capello as their new coach.
"I am very happy about this and would like to thank the Football Association (FA) for its continued support and assurances about my future," he said.
"I always wanted to stay until the end of my contract."
The news that the former Real Madrid and AC Milan coach is staying in the job will be a major confidence boost to the England squad, who fly out to South Africa for the World Cup on Wednesday night.
Capello had been in talks with former FA chief executive Lord Triesman to update his contract and remove the break clause, before Triesman's recent resignation.
Club England chairman Sir David Richards took over the job of negotiations with Capello, and once it became clear the FA's acting high command held similar opinions to Triesman, the Italian confirmed he would remain with England until the end of the Euro 2012 tournament in Poland and Ukraine.
"We are very pleased to have Fabio's commitment for another two years and it is good that we have been able to resolve this before the team flies to South Africa," said Richards.
"Now we can all concentrate on the World Cup and give Fabio and the players our full support."
Capello's decision to stick with England will be a disappointment to newly-crowned European champions Inter Milan.
Following Jose Mourinho's departure from the club to take over as Real Madrid coach, Inter club president Massimo Moratti had said he "would be pleased if he (Capello) frees himself after the World Cup".
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