Bilic had been one of the names tipped as a possible replacement for Sven-Goran Eriksson at Manchester City at the end of the season.

However, after signing the new contract he is now set to remain in charge of Croatia until the 2010 World Cup.

The squad announced today includes Werder Bremen forward Ivan Klasnic, who was only recalled to the national team in March 2008 following his return from a kidney transplant.

Squad: Pletikosa (Spartak Moscow), Runje (Lens), Galinovic (Panathinaikos); Corluka (Manchester City), Simic (AC Milan), Robert Kovac (Borussia Dortmund), Simunic (Hertha Berlin), Knezevic (Livorno), Vejic (Tom Tomsk); Pranjic (Heerenveen), Srna (Shakhtar Donetsk), Niko Kovac (Salzburg), Modric (Dinamo Zagreb), Kranjcar (Portsmouth), Leko (Monaco), Rakitic (Schalke), Vukojevic (Dinamo Zagreb), Pokrivac (Monaco); Petric (Borussia Dortmund), Olic (Hamburg), Klasnic (Werder Bremen), Budan (Parma), Kalinic (Hajduk Split).