Stuttgart manager Sebastian Hoeness’ contract was extended by two years until 2027 on Friday.
The development comes after Hoeness help his side move out from relegation zone to Champions League contention.
Hoeness had been linked to Bayern Munich, with current coach Thomas Tuchel departing in the summer.
The 41-year-old was roped in April 2023 with Stuttgart in last place. He helped the club stay in the top division after getting them through a relegation playoff against second-division Hamburg, while also stitching a run to the German Cup last four.
Stuttgart were likely to find life difficult this season, especially due to the departure of club captain Wataru Endo to Liverpool as the campaign kicked off.
However, Hoeness’ side is currently in third place, with a seven-point advantage as compared with fifth spot as Stuttgart look to make a comeback to the Champions League for the first time since 2009-10.
With 50 points after 24 games, this is the best record for a Stuttgart side at this stage of the season, including the team which bagged the Bundesliga in 2007.
Serhou Guirassy, who has notched up 20 goals in 18 league games this season, and Brighton loanee Deniz Undav, who has netted 14 in 20 matches, are among the players who have thrived under Hoeness.
"Stuttgart is a special club. As a little boy, I sat here in the stadium and cheered for the club," said Hoeness, who played as a midfielder for Stuttgart's youth side.
"Our goal must be to establish Stuttgart in the top half of the table again."
"The absolutely right and logical step", CEO Alexander Wehrle said about the contract extension. "Sebastian Hoeness and Stuttgart are an excellent fit."
Hoeness' uncle Uli is a Bayern board member and remains one of the most influential members at the club. Father Dieter accumulated 102 goals in 224 games for Bayern, while also featuring for Stuttgart for four years.
Stuttgart will lock horns with Union Berlin on Friday night and can reduce the gap to second-placed Bayern to one point with a win.