Borussia Monchengladbach has extended the contract of coach
The former Hertha Berlin coach has led the club from the brink of relegation to a place in the UEFA Champions League in just over 12 months and has now been rewarded with a new deal.
Favre has been involved in negotiations with Monchengladbach for several months and doubts had been raised whether he would commit to a new contract.
His achievements with the club have not gone unnoticed with his name being linked to several top clubs, including Olympique Marseille and Bayern Munich.
However, the 54-year-old expressed his delight at finally reaching an agreement.
"I have been holding talks for a long time with the board and the management and I am now pleased with this contract extension and the attractive challenges which lie ahead of us," he said.
Favre took charge of the Foals in
He managed to keep them up with victory in a relegation playoff against Bochum before guiding the club to a surprise fourth-placed finish last season.
Next season, he will have to do without the likes of
Fortuna Dusseldorf was relegated from the Bundesliga as Hoffenheim and Augsburg staged final-day escape acts.