Grayson took over as co-coach with Budge Pountney in 2004

"He is still developing as a coach but we are more than happy with progress," said Saints owner Keith Barwell.

Grayson has been rewarded for guiding Saints away from relegation trouble and into next season's Heineken Cup.

The former England fly-half took charge of coaching with Budge Pountney after Alan Solomons' exit in November 2004.

Pountney eventually became director of rugby this season, allowing Grayson to assume sole responsibility for coaching following his retirement from playing.

Barwell added: "Paul is totally committed to Saints, a club he has already served for 13 years, and shares the same desire for silverware and quality rugby that the board, players and supporters do."

This is one of the great clubs of the modern era with a proud tradition Paul Grayson

Grayson said: "I am obviously very pleased to be making this long-term commitment to Northampton Saints.

"It is a statement from the board in terms of the direction it wants the club to move in and I am honoured they have bestowed that responsibility on me.

"This is one of the great clubs of the modern era with a proud tradition, some of the most hard-working players and staff I have ever worked with and a great set of supporters."