Thomas Tuchel saw Paris Saint-Germain end the season with three wins in 10 matches in all competitions, but he has earned a new deal.
Paris Saint-Germain coach Thomas Tuchel has extended his contract until June 2021 despite an underwhelming end to his first season with the Ligue 1 champions.
Tuchel arrived at Parc des Princes last year and guided PSG to a comfortable league title defence, but results were less impressive in the cup competitions.
PSG were knocked out of the Champions League by Manchester United in the last 16, while Guingamp inflicted an early Coupe de la Ligue exit and they were then beaten in the Coupe de France final by Rennes on penalties.
The shoot-out defeat to Rennes came in a run of just three wins in 10 matches in all competitions at the end of the season, concluding with Friday's 3-1 league defeat at Reims.
"I'm sure that the best is yet to come", says Tuchel
However, Tuchel insisted after the match that he was confident of remaining in Paris and news of a new deal - with a year-long extension - was confirmed on Saturday.
A club statement said Tuchel "won over the players, staff and the club with his natural warmth, as well as his modern vision of football".
Tuchel, whose coaching staff have also been rewarded with season-long extensions, said: "I'm delighted to extend my contract and commitment to Paris Saint-Germain, putting pen to paper on the new deal.
"I'd like to thank the chairman and the whole club for their trust in me and my staff. This only reinforces my ambition to bring this team to the very top through hard work.
"I'm also very touched by the backing of our supporters and I'm sure that the best is yet to come for our club."
PSG president Nasser Al-Khelaifi added: "Today, the whole Paris Saint-Germain family is delighted to see Thomas Tuchel extend his contract.
"For a year now, Thomas has been bringing fantastic energy to the daily life of the club, not only for the players, but for the whole of Paris Saint-Germain.
"Our supporters immediately took to this coach who is always keen to share his analysis and emotions with as many people as possible. Thomas is a huge football fan and a very demanding coach who also listens to others.
"Thomas has expertise in the game as well as great managerial skills and we are delighted to be able to rely on his qualities on a long-term basis."
Uncertainty over Neymar, Mbappé as PSG head into summer
Tuchel's new deal should offer PSG some stability ahead of a potentially eventful close-season, with moves in and out of the club mooted.
He is said to be desperate for a larger squad in order to compete on multiple fronts, but possible outgoing transfers have stolen the headlines in recent weeks.
Rumours persist over record signing Neymar's future, while Kylian Mbappé last week hinted that he might be looking for a "new project".