Domenech led the French to the 2006 World Cup final
France coach Raymond Domenech will remain in charge of the national team despite their failure at Euro 2008.
Domenech's position was under threat after his side failed to win any of their three games at the tournament and were knocked out in the group stages.
But a statement from the French Football Federation (FFF) confirmed he will lead their World Cup challenge.
"Domenech's record is not that bad as coach. It is not catastrophic," said FFF president Jean-Pierre Escalettes.
"He qualified for a major competition two straight times. I did not want emotion and passion to get the better of reason."
The FFF said that Domenech's targets "have been re-defined and his managerial responsibilities re-evaluated".
Domenech received 18 votes backing him to stay, with one abstention.
Domenech took over from Jacques Santini as France manager after Euro 2004 and guided the team to the 2006 World Cup final, where they lost on penalties to Italy.
But despite that success he has not always been a popular coach and has earned himself a reputation as a controversial character.
Escalettes said Domenech must change his ways and avoid the sort of comments the president described as "sometimes like pouring vinegar on a wound".
"He only has one mission now, to concentrate on what happens on the field," Escalettes added. "Now the communication has to be focused on the French team, not personal viewpoints.
"In my opinion this communication was sometimes disastrous, aggressive and lacking clarity. He has a few years of experience behind him, and it's up to him to show he can bounce back from this failure."
France's first qualifier for the 2010 World Cup is back in Vienna against Euro co-hosts Austria on 6 September.
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