The contract incorporates new terms for the 2007/08 season, which was the third and final year of Merrick’s initial contract with the club.

In announcing the new deal, Victory Chairman Geoff Lord paid tribute to Merrick’s achievements so far as the club’s inaugural coach.

“We are pleased to announce that we have agreed terms with Ernie through until the end of the 2009/10 season,” Chairman Geoff Lord said. “We acknowledge Ernie’s excellent contribution as a championship winning coach and his new contract is fitting recognition for his coaching performance.

“We look forward to supporting Ernie and our team as we seek to defend our championship and participate for the first time in the AFC Champions League.”

Speaking ahead of the club’s Round 3 clash with Adelaide United, Merrick praised the Victory board for its long term vision and stability.

“It’s a truism throughout world football that the most successful clubs are usually the most stable, and it’s great to be a part of a club with a board which has such a strong long-term vision,” Merrick said.

“I’m really happy with the outcome, because it provides a platform for us to build long-term strategies and coaching plans. It gives all our staff the confidence to build on our programs and develop our playing group not just for this current season, but for years to come.

“We’ve got a great playing list, two-thirds of which are experienced players, but the other third are young and developing players in the same mould as Adrian Leijer was. You can only do that if you have a long-term plan rather than battling for year-on-year survival.”

After finishing in seventh place in the club’s inaugural season, Melbourne flourished under Merrick last season, claiming the A-League Premiership/Championship double.

Merrick has amassed a formidable record in the A-League so far, winning 23, drawing 10 and losing 13 in his two and a bit seasons in charge.

In Victory’s championship season, the club set a new record for most consecutive wins (8), greatest premiership winning margin (12 points) and greatest Grand Final winning margin (6-0 vs Adelaide United).