MADRID, June 30 (Reuters) - Luis Aragones will continue as Spain coach until Euro 2008.
'The (Spanish Football) Federation were pleased with my work and this motivated me to extend my contract,' Aragones told a news conference on Friday.
The 67-year-old had hinted he would step down after his team lost 3-1 to France in the second round of the World Cup on Tuesday.
Before the competition he said he would quit if Spain did not reach the semi-finals.
'What I said before the tournament I would say again in the future but it is the federation who have the final word,' said Aragones.
'I told them I was going to leave but they have convinced me they appreciate what I have done and want me to continue.'
The defeat by France was Aragones's first in 26 matches since taking over from Inaki Saez after Spain's first-round exit at Euro 2004.
'The fans should know I am continuing because I want to, and because I want to win a major event. I want to get my revenge in Euro 2008,' Aragones said.
'I don't think we were inferior to anyone at the World Cup, bar some small details, and I will carry on working as I have been doing to improve every aspect.'
Federation secretary general Jorge Perez said: 'We didn't ask him to make us champions.
'We wanted hard work, dedication and commitment and this is what we get from him. This is more important than individual results.'