René Wagner will remain Cologne coach and receive a contract until 2028, the Bundesliga club said on Friday.
Former assistant Wagner took over from Lukas Kwasniok in March on a deal until the end of the season.
He managed only six points from seven games but that was good enough to avoid relegation as Cologne finished three points above the danger zone in 14th.
"René fits us very well, because he doesn’t just understand the values of our club but lives them. Since he took over, he has shown that he can give direction in a difficult situation and bring people together for a shared goal," managing director Thomas Kessler said.
"Looking ahead to the development of our team, we now see the chance to build something together and develop as a result. We are convinced that René, with his manner, with his clarity and with his expertise, is the right Head Coach for the path we are on."
Wagner said: “I am very pleased with the decision and the trust from those responsible at FC (Cologne). The fact that I am able to take on this role with FC in the Bundesliga is something special for me.
"We were able to stay up. That was the main goal in the last few weeks and is the basis for taking the club, together with the team, another step in the direction of becoming a stable Bundesliga club. I will do everything to make that happen."
Wagner had also been backed by team captain and goalkeeper Marvin Schwäbe.
“He’s done a good job over the last few weeks; he’s found a good way to communicate and has made the necessary adjustments. Even though, unfortunately, the points haven’t quite materialised, he’s done a good job," Schwäbe said.
