The Turkish Football Federation made the announcement this afternoon amid speculation - partly fuelled by Terim himself - the coach would quit and seek a return to club management.

"Terim is in his post and will be the head of our team in the 2010 World Cup," said a statement on the TFF's website.

Terim led Turkey to the semi-finals of Euro 2008 as they exceeded all expectations before being knocked out by a last-minute Phillip Lahm goal in a 3-2 defeat by Germany on Wednesday night.

That was despite a lengthy list of injuries and suspensions that had Terim calling on all his years of experience to adapt his tactics.

The 54-year-old has previously coached AC Milan, Fiorentina and Galatasaray.