Jose Mourinho has signed a contract extension with Inter Milan to keep him at the club until June 2012.
The former Chelsea boss, who brought the Serie A title to the Nerazurri in his first season in charge, had earlier said there was a "0.01%" chance he could leave the club.
But a statement on the club's website read: "In response to the wish of the coach to continue the project started together a year ago, a wish welcomed with pleasure by the club as a sign of attachment and winning spirit, FC Internazionale announces the extension of Jose Mourinho's contract until 30 June 2012."
Mourinho took the helm at Inter last summer following the departure of Roberto Mancini and guided the club to a fourth straight Serie A title.
In Europe, however, the club lost in the first knockout round of the Champions League.
He promised the fans more titles would be on the way shortly after celebrating his first scudetto.
But, despite being contracted to the San Siro club until 2011, he had been strongly linked with Real Madrid.
When asked about the chance he could leave Inter, Mourinho told the club website: "There is still a 0.01% (chance).
"But for me this is not an important number, it just means that I am closer to Inter than to Real.
"I am satisfied with the relationship with the fans and with my players.
"I repeat, I am closer to staying at Inter than going elsewhere."
The comments appeared to irk Inter president Massimo Moratti, who said: "I'm monitoring the situation. It's a subject on which we will arrive at a conclusion.
"I wouldn't say that I'm angry but certainly I don't like reading certain things."
But any differences now appear to have been ironed out with Mourinho adding another year to his stay at the club.
Mourinho led Porto to the Champions League title in 2004, beating Monaco 3-0 in the final, before moving to Chelsea.
At Stamford Bridge he claimed the Premier League title in each of his first two seasons and the FA Cup the following campaign, but left the club in September 2007.
Not all Inter fans have warmed to the Portuguese since his arrival in Milan last summer and he has been involved in several disagreements with the Italian media.
His style of play has has not endeared him to parts of the Nerazzurri faithful, who were also dismayed by their side's 2-0 aggregate defeat by Manchester United in the Champions League.