Aragones offered to resign after Spain's earlier defeat by Northern Ireland

The setback in Solna was Spain's third loss in five games.

But federation president Angel Villar told Spanish TV: "We're on the side of the coach and we support all his work. He has had a splendid career.

"He will keep working to take the team to the European Championship finals in Austria and Switzerland."

Before their recent slump, Spain had gone 25 games unbeaten under Aragones.

The coach, who offered to resign after losing 3-2 to Northern Ireland last month, said: "I've been in soccer for a long time and I know these things happen.

"I'm under no obligation to go and whether I stay or not depends on the federation.

"I recognize that we have lost two qualifying games and this is a burden but I feel strong enough to continue."

The previous time Spain suffered two straight defeats was 15 years ago, also in European qualifying games and when they failed to reach the finals.

Spain, who play host to Argentina in a friendly on Wednesday, do not have any Euro 2008 qualifying games until March - when they face Denmark and Iceland.