Diego Simeone signs new Atletico Madrid contract until 2020

Atletico Madrid coach Diego Simeone has signed a new contract committing him to the reigning Spanish champions until 2020, the club have announced.

Simeone, 44, led the Rojiblancos to glory in La Liga last season before they reached the Champions League final, only to lose to local rivals Real Madrid in extra time in the Lisbon final.

There had been uncertainty surrounding the Argentine's future at the Estadio Vicente Calderon as the club let several star players leave last summer and media reports had linked him with replacing Manuel Pellegrini at Manchester City.

However, the former Atletico midfielder has now signed a new deal to replace the one which was due to expire in June 2016.

As a player, Simeone had been part of Atletico's last title-winning side in 1996, but the club could not maintain that success and they were relegated four years later.

His return as coach in 2011 heralded a new era for the club, winning the Europa League and the Copa del Rey before coming within seconds of a league and European Cup double last season.

Simeone's job achievements have been more admirable considering Atletico's financial disadvantage when competing against domestic powerhouses Real Madrid and Barcelona, as well as Europe's other top clubs.

Chelsea, who Atletico beat en route to the last season's Champions League final, swooped to sign star striker Diego Costa and key defender Filipe Luis in the summer, while they also recalled goalkeeper Thibaut Courtois after three years on loan at the Calderon.

Such limitations had helped fuel speculation that Simeone would look elsewhere to see his ambitions matched, with City identified as a likely destination, but he told a news conference on Tuesday that he was fully focused on his future at Atletico.

"It's an important moment for the club and for the technical team," he told a news conference on Tuesday. "We've worked hard to secure this stability that we currently have. I have full trust in my staff and they give me the strength to carry on.

"I remember that telephone call in December [2011] when I was asked to pick things up. I'd like to thank the club, players, past and present. Without their effort and belief, none of this would ever have been possible.

"Ahead of us we can look forward to a new stadium, there is a great deal of excitement. The club keeps growing. I've made a decision to stay where I am and decisions are sometimes difficult to make in life.

"Fortunately I've been able to make this decision as I see a club that is moving forward, I see eagerness to grow and people willing to collaborate. We all love Atletico Madrid, and we all want to grow together. We all have a responsibility, hard work, nerves and fear. There is plenty ahead for us and so much depends on the ball going into the net or not but at least we will offer hard work as always."