Koeman recently met with members of PSV's board of directors to discuss his future at the club following chairman Frits Schuitema's comments last month which hinted the 44-year-old could be on his way out of the Philips Stadion.

PSV claimed their third title on the trot on goal difference from Ajax on a thrilling final day of the season, but both supporters and players are alleged to have become dissatisfied with the former Barcelona coach after the club blew an 11-point lead at the summit before their late recovery.

However, a statement on the club's official website, www.psv.nl, on Monday confirmed: "Ronald Koeman will stay on as head coach of PSV for the coming season.

"In recent days, discussions have taken place between the club's board and Koeman, which has led to the mutual agreement that he will serve out his current contract."

Koeman was delighted with the outcome of the talks and looking forward to another year in Eindhoven.

"I am glad that this matter is over and I will enter the new season with a positive feeling and with loads of confidence," he said.

And Schuitema admitted the pair had resolved their differences and were ready to start a new chapter with the club.

"It was a positive and neat conversation, in which all trouble points were removed," said the chairman.

"The past is the past, we will now start working on a repeat of the season."