Marcelino has signed a new three-year deal at Villarreal, the Liga club have confirmed.
The former Spain youth international - whose contract was set to expire at the end of this season - arrived at Villarreal in January 2013 and guided the club to second in the Segunda Division, sealing a return to the top flight.
In their first two campaigns back in La Liga, Villarreal finished sixth on both occasions, securing qualification to the Europa League.
They reached the last 16 in 2014-15 before being knocked out by eventual champions Sevilla.
This season, Marcelino has led the club to fifth in La Liga after 11 matches, while once again they look well placed to reach the knockout stages of the Europa League.
An official presentation to announce Marcelino's new deal will be made on Monday.