Unai Emery has agreed a new one-year deal to remain as Valencia coach after taking Valencia back into the Champions League.
Emery guided Valencia to a comfortable third place finish this season, more than 20 points adrift of Barcelona and Real Madrid, but nine points clear of Villarreal.
"Unai has proven himself,'' said club president Manuel Llorente. "To go directly into the Champions League is very valuable and we greatly appreciate his desire to improve us and his ability to do so.
"We are growing, giving hope and joy to the fans. The challenge is to take another step forward in performance and be better every year and Unai is ambitious. He has all the requirements and the confidence of the club.''
Valencia's performance this season surprised many observers as last summer was marked by the departures of their two star players, David Villa and David Silva, to Barcelona and Manchester City respectively.
That was a sign of their financial problems, making the Champions League football Emery has again secured all the more important.
Emery said: "I am very happy to have another year with one of the best clubs in the world. It is my intention to keep developing this club and that project drives me.
"The goal we have set is to improve and take further steps to make the most of our performance. We have a great team and they can give us great joy.''