McClaren has committed his future to FC Twente until 2011
Steve McClaren has signed a one-year contract extension with Dutch league leaders Twente Enschede that is set to keep him at the club until 2011.
The 48-year-old former England boss joined Twente in June after failing to guide England to the Euro 2008 finals.
Twente finished second last season and lost the Dutch Cup final on penalties.
"It is an ambitious club as we have shown," said McClaren. "It's a pleasure to work with a management team and players who want to achieve something."
McClaren linked up with Twente last summer after his England managerial role came to a halt on the back of the 3-2 defeat by Croatia in November 2007 which ended their Euro 2008 hopes.
The former Middlesbrough boss - who also had a spell at Manchester United number two - opted for a move to the Netherlands claiming that "staying in one country can narrow your mind".
Some Twente fans opposed McClaren's appointment but his tenure has so far been a successful one.
Twente finished second last season to AZ Alkmaar, lost the Cup final to Heerenveen and currently lead the Dutch league two points clear of PSV Eindhoven after 11 games.
Twente chairman Joop Munsterman stated: "It goes without saying that FC Twente are delighted Steve has decided to extend his contract.
"Both parties are very keen for the technical policy of the club to be continued. Steve McClaren is ambitious, FC Twente are ambitious so it fits."
Twente have played 62 games since McClaren arrived, winning 35, losing 12 and drawing 15.
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