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By ESPN Staff

Pellegrini extends contract with Villarreal to 2008

MADRID, Jan 15 (Reuters) - Villarreal coach Manuel Pellegrini has signed a one-year extension to his contract which will keep him at the club until 2008, the Primera Liga side said on Monday.

The 53-year-old joined Villarreal from River Plate in 2004. He steered the modest club to the quarter-finals of the UEFA Cup and third place in the Primera Liga to earn their first Champions League place in 2005.

Last season they made it to the Champions League semi-finals, where they fell 1-0 to Arsenal, and finished seventh in the league.

They have struggled this season, however, and are currently 11th in the Primera Liga.