Karel Bruckner will lead the Czech Republic into the 2008 European Championship after agreeing a two-year contract extension.
Bruckner blamed lack of discipline for the Czechs' exit
Czech football federation spokesman Vaclav Tichy said an agreement with the veteran coach was "a done deal".
The Czech Republic failed to progress past the group stages in their first World Cup as an independent nation.
They face Germany, Wales, Slovakia, the Republic of Ireland, Cyprus and San Marino in their Euro 2008 qualifiers.
Bruckner took over the reins after the Czech Republic failed to qualify for the 2002 World Cup and guided them to the semi-finals of Euro 2006.
Ranked second in the world by Fifa, the Czechs were expected to advance from their group but Bruckner blamed a lack of discipline on their early exit.
The Czechs' cause was not helped by injuries to key players, with Jan Koller sidelined after their opening win against the United States and Milan Baros only fit for their last game.