Smith and Arthur want to make South Africa the best side in the world

The decision has been taken despite their semi-final exit from the World Cup after beginning the tournament as the game's top ranked one-day side.

Cricket South Africa chief Gerald Majola said that despite the World Cup results, the pair had "spearheaded the team's most successful season yet".

"We believe Graeme and Mickey can do the job at hand," he said.

Arthur, who has been in charge since May 2005, presented a frank report to the board on Thursday which set out reasons for the team's inconsistent performance in the Caribbean.

"Among these reasons are a lack of maturity among some senior players, and a lack of consistent mental toughness that is needed to take the Proteas successfully through an arduous World Cup.

"The board decided that among the measures to be taken will be the appointment of a team manager...we are going to draw up a profile and job description and then make the appointment as soon as possible," said Majola.

"The team manager must provide leadership qualities that will enhance the team and assist the captain and coach such as matters as mental toughness, discipline and public affairs."

Smith said he was delighted by the confidence shown in him by the board.

"I would also like to thank all those South Africans who support the team and wish to assure them that we will be out there doing our best for them," he continued.

South Africa's next major assignment is the inaugural ICC Twenty20 World Championship which they will host in September.

"I believe we have the right tactics and talent to take on the best. We have learnt some valuable lessons at the World Cup which we will address in our planning for the forthcoming season," Arthur commented.