Bruno Genesio has been rewarded with a three-year contract after guiding Lyon to second place in Ligue 1 last season.
The 49-year-old took charge in December 2015 after the departure of Hubert Fournier, and led Lyon to 12 league wins in 19 matches.
Lyon's form in the second half of the campaign proved decisive as they pipped Monaco and Nice to the second automatic place in next season's Champions League group stage.
And Genesio will be given the chance to build on that impressive record after agreeing a new deal until 2019.
"I am very proud to extend my contract in light of my initial work with the club," he told a media conference. "I thank the president for his confidence."
The head coach hopes to keep the majority of his squad together heading into the new campaign, despite growing interest in the likes of Alexandre Lacazette and Samuel Umtiti.
"I asked the president to keep the backbone of the team [together]. I hope to keep the majority of the team.
"We will do everything to keep the players, but also try not to deny a player if he receives the proposal of a lifetime."