(CNN) -- Fabio Capello has kept his job as England manager despite their disappointing showing in the World Cup in South Africa.
England failed to win their group and were thrashed 4-1 by Germany in the last 16.
After that defeat in Bloemfontein last Sunday, Capello was told that he would have to wait until a meeting of the English Football Association (FA) Board in a fortnight before his future was decided.
But on Friday, the FA confirmed that the 64-year-old Italian would be staying on.
"I am more determined than ever to succeed with the England team," Capello told the official FA website.
The eventual decision was taken following a meeting of the four-man Club England board.
Capello will stay in his role until their involvement ends in the 2012 European Championships and he told Club England chairman Dave Richards that this was his overriding task.
"I explained it is very important we use the disappointment as a motivation in the future.
"I can assure the fans I am now fully focused on our European qualifying fixtures, starting with the friendly against Hungary in August."
Capello signed an extension to his reported $8.99 million per year deal just before the World Cup finals, but after England's sorry performances he was widely expected to go.
But he signaled his determination to carry on and has now been given the backing of the England hierarchy.
Crucial to his survival may have been the interventions this week of Bolton chairman and senior FA figure Phil Gartside, who is a close ally of Richards.
Facing a large compensation claim should they have dispensed with Capello, a likely successor, Roy Hodgson, took over the Liverpool job having left Fulham, to leave the FA's options severely restricted.
Capello, who succeeded Steve McClaren two and a half years ago, initially enjoyed considerable success as England qualified for South Africa with ease, but their performances in the finals were a massive letdown.
Draws with the United States and Algeria were followed by a narrow win over Slovenia and their biggest ever defeat in a World Cup finals to arch-rivals Germany.