Ecuador coach Luis Fernando Suarez a 47-year-old Colombian has agreed to stay on in the job to take the team to the 2010 World Cup.
"They have reached an agreement and he will stay for the next (World Cup) qualifying competition," Suarez's spokesman Antonio Bravo said after a meeting between the coach and officials from the Ecuadorean Football Federation.
Ecuador, playing in their second World Cup Finals, reached the last 16 in Germany after beating Poland and Costa Rica in their group. They eventually lost 1-0 to England.
Their progress sparked massive celebrations in a country deeply divided by political instability and poverty.
Suarez is the only coach of the four South American teams at the World Cup to keep his job. Brazil's Carlos Alberto Parreira, Argentina's Jose Pekerman and Paraguay's Anibal Ruiz all left following the tournament.