Briatore and Alonso have inspired Renault to a superb start

There had been speculation that the 55-year-old Italian Briatore would retire at the end of the season, but he has agreed a new one-year extension.

Alonso, who leads the championship after two early wins, has been linked with Ferrari but Briatore said he would stay at Renault for the time being.

"He is confirmed for 2006," he said. "But after that, no."

Renault's encouraging start to the season prompted Briatore to change his mind and remain at the helm.

We are extremely pleased with the work the team has done Renault president Patrick Faure

"It has been a long time I have been doing this job," he said.

"But Renault is the last challenge in Formula One. The moment I leave Renault I leave Formula One."

His long Formula One career has been spent exclusively with the team, and he guided them to three world titles before a spell with the Supertec engine supplier.

Renault president Patrick Faure said the decision to retain Briatore was taken with the "full agreement" of new CEO Carlos Ghosn.

"We are extremely pleased with the work the team has done and the results it has achieved under Flavio Briatore's management," added Faure.