Jones enjoyed a successful first season in charge of Cardiff

Jones, 49, said: "With the new stadium now about to take place and everything else, there is something special going to happen at this football club.

"There are too many things going on now for it to be just a gut feeling.

"Everything is geared towards being a fantastic football club - and I want to be part of that."

Jones took over at Ninian Park last May on a three-year deal, but had been linked with a move to managerless Derby County and Crystal Palace.

It was an easy decision to make and I'm glad that I've made it Cardiff City manager Dave Jones

He guided the Bluebirds to 11th place in the Championship despite the club's on-going financial difficulties which restricted him to one of the smallest playing squads in the division.

Cardiff sold three of their best players last season to ward off the threat of administration because of debts of �30m.

But the club is now increasingly confident they can produce a viable business plan for the local council so work can finally begin on the proposes 30,000-seater stadium.

Chairman Sam Hammam describes his manager's new contract agreement as "an important piece of our jigsaw", and Jones believes his long-term commitment to the club will help him sign new players.

Jones said: "I just felt that once I'd spoken to Sam and Peter (Ridsdale, deputy chairman) about staying at the football club it was the right decision for me.

"If I'm bringing players to the club and selling the dream to them, the last thing they want is for me to walk away, so it was an easy decision to make and I'm glad that I've made it."