Terim extends stay as Turkey boss

Terim came close to taking Turkey to a major final

Fatih Terim has agreed to stay on as Turkey coach until 2012, according to the Turkish Football Federation.

Terim had hinted he was considering quitting after his side's Euro 2008 semi-final defeat to Germany, while reports linked him with jobs in Italy.

The TFF had insisted Terim would stay until 2010 and now the 54-year-old has confirmed his long-term future.

"In the meeting we agreed to extend the contract until 2012," said TFF president Hasan Dogan.

Terim's contract was due to run out in 2010.

Turkey proved one of the surprise teams in Austria and Switzerland, only going out to a last-minute goal to Germany.

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They were hamstrung by injuries and suspensions going into the game but were the better of the two teams, only to lose to Philipp Lahm's last-minute winner.

Terim has coached AC Milan and Fiorentina as well as Turkey's Galatasaray, but has proved a huge hit in charge of the national side.