Brian McDermott has ended speculation linking him with the managerial vacancy at Wolverhampton Wanderers by signing a new deal with Reading.
Premier League side Wolves reportedly made an approach to Reading earlier this week for permission to discuss terms with their boss.
However, the Royals rejected Wolves' advances and have opted to hand McDermott a new contract.
"I am absolutely delighted that Brian is signing and this is a very, very important day for our club. Everybody knows how highly we rate him and he has more than repaid the faith we showed when we appointed him. He is a top manager," chairman Sir John Madejski told the club's official website.
"In the space of two years he has not only taken us to the play-off final and to two quarter finals of the FA Cup, he has done so in a manner befitting Reading Football Club. He is extremely well respected by the staff, players and of course the supporters and I know this news will be very well received by our fans.
"From day one both myself and Anton wanted to secure Brian's services as it was only a matter of time before he was mentioned in connection with other clubs. These processes take time and we have today come to a fantastic agreement that puts our club on an even more secure footing going forward."
McDermott has agreed terms until 2015.