Watford have shown their faith in manager Adrian Boothroyd with an improved new three-year contract, despite their relegation.
Watford have shown their faith in Boothroyd with a new deal
The improved terms on an existing deal will keep the 36-year-old at Vicarage Road until 2010.
Former Leeds' first team coach Boothroyd was appointed Watford boss in March 2005, succeeding Ray Lewington.
Boothroyd told the club's website: "I'm fortunate to work with a chairman and board who allow me to do the job."
Hornets' chairman Graham Simpson said: "I'm thoroughly delighted we have been able to reward and at the same time secure the services of one of the country's brightest and most prodigious talents.
"It's a sign of our intent and how much trust the board has in him that we have reaffirmed our commitment to him ahead of what promises to be a very exciting campaign next season."
Boothroyd enhanced his reputation as one of the country's brightest young coaches by saving a struggling Watford side from relegation in his first two months in charge.
The following season, he completed his transformation of the club in his first full season in charge by finishing third in the Championship and guiding Watford into the Premiership via the play-offs.
The way the fans have behaved towards me and the team has been very humbling
Watford boss Adrian Boothroyd
Watford clinched their top-flight berth with a 3-0 win over his former employers in the play-off final.
He added: "I think loyalty works two ways. I'm thrilled to be committing my immediate future to Watford, a club who I know can do great things."
Working on a much smaller budget than many of the clubs around him, Boothroyd faced a difficult task in keeping Watford in the Premiership.
Boothroyd added: "I'm a great believer in stability and it's important our thinking goes beyond the short-termism you often see in football.
"We have great ambitions for this club and with continuity I only see good things for the future.
"This season, the way the fans have behaved towards me and the team has been very humbling.
"It's only right we give those people something to shout about once again and I will be working to do that."