Jose Mourinho signed a new four-year contract with Real Madrid as he feels the club represents the "perfect challenge" for his coaching career.
On Tuesday it was announced that Mourinho, 49, had penned a new deal with Real that will keep him at the Bernabeu until 2016.
It had been suggested the Portuguese coach could seek a new club after leading Real to the Liga title this season, but he has outlined his excitement for his future ahead with his current side.
"I've always said this squad is young and that its best years are yet to come," Mourinho told the club's official website. "It isn't a squad with players on the verge of extinction or playing their final years of top tier football. The club, with its incredible social reach and structure, can adapt to the times and to what we're trying to do.
"As a manager, I always try to grow and improve. I've loved the professional experience I've had of working for different clubs in different countries and cultures, and to learn from that while giving my best. I've loved that process.
"It's different for me now because I'm thinking about a club long term, and that club is Real Madrid, which has been more demanding and has forced me to do my absolute best due to its difficulties.
"I've had to improve as a coach and a professional. I think it is the perfect challenge for the next four years because you always have to do more when things are hardest. I need these great challenges in the maturity of my career; I need things to force me to be better."
Asked what prompted him to put pen to paper, he replied: "The overall project; the wish of the president to have a long-term project, which is something unusual in today's football; the confidence he has always had in me and my work; and the special feeling I always said was important when there were rumours about me leaving.
"I've always said that's very important to me and that I would stay while the fans, the team and the club were happy and confident in with my work. I've got to know this club and its great qualities better, as well as the small problems it has like any other institution or person.
"I'm delighted to stay on and plan the sporting future of Real Madrid's first team, and we know we must obviously focus more on the short term and talk little about the distant future."