Joachim Loew is set to coach Germany until the 2012 European Championship, the national football federation said Wednesday.
"There was never any question for us over the fact that we wanted to continue working with the national coach," German Football Federation president Theo Zwanziger said.
Zwanziger confirmed the 49-year-old is to stay on after next year's World Cup.
"I am glad that we were able to shake hands on a contract extension and now can go calmly into the World Cup year," he added.
Loew succeeded Juergen Klinsmann after the 2006 World Cup. He took the team to the final of last year's European Championship, which it lost 1-0 to Spain.
Germany topped its qualifying group for the 2010 World Cup. It will face Australia, Serbia and Ghana in the group phase.
The German federation said that Loew's new contract will be signed next month.
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