The 52-year-old, who was due to be out of contract in the summer, had been linked with the Real Madrid and Spanish national side jobs in recent weeks.
However, he has now committed his future to the San Mames until June 2017.
"My club is Athletic," Valverde told the club's official website.
The former Spain international is in his second spell in charge of Bilbao.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Atletico MadridAtletico | 19 | 13 | 5 | 1 | 34 | 12 | 22 | 44 |
| 2 | Real Madrid | 19 | 13 | 4 | 2 | 43 | 19 | 24 | 43 |
| 3 | Barcelona | 19 | 12 | 2 | 5 | 51 | 22 | 29 | 38 |
| 4 | Athletic Bilbao | 19 | 10 | 6 | 3 | 29 | 17 | 12 | 36 |
| 5 | Villarreal | 18 | 8 | 6 | 4 | 34 | 30 | 4 | 30 |
| 6 | Mallorca | 19 | 9 | 3 | 7 | 19 | 21 | -2 | 30 |
| 7 | Real Sociedad | 18 | 7 | 4 | 7 | 16 | 13 | 3 | 25 |
| 8 | GironaGirona | 19 | 7 | 4 | 7 | 27 | 25 | 2 | 25 |
| 9 | Rayo Vallecano | 19 | 6 | 7 | 6 | 22 | 22 | 0 | 25 |
| 10 | Real BetisBetis | 19 | 6 | 7 | 5 | 21 | 23 | -2 | 25 |
| 11 | Osasuna | 19 | 6 | 7 | 6 | 23 | 28 | -5 | 25 |
| 12 | Celta Vigo | 19 | 7 | 3 | 9 | 28 | 30 | -2 | 24 |
| 13 | Sevilla | 19 | 6 | 5 | 8 | 21 | 28 | -7 | 23 |
| 14 | Las PalmasLas Palmas | 19 | 6 | 4 | 9 | 24 | 29 | -5 | 22 |
| 15 | Getafe | 19 | 4 | 7 | 8 | 13 | 16 | -3 | 19 |
| 16 | Leganes | 19 | 4 | 7 | 8 | 18 | 29 | -11 | 19 |
| 17 | AlavesAlaves | 19 | 4 | 5 | 9 | 21 | 31 | -10 | 17 |
| 18 | Espanyol | 19 | 4 | 4 | 11 | 17 | 31 | -14 | 16 |
| 19 | Valencia | 19 | 2 | 7 | 10 | 18 | 29 | -11 | 13 |
| 20 | Real ValladolidValladolid | 19 | 3 | 3 | 12 | 13 | 37 | -24 | 12 |
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