(CNN) -- Bayern Munich coach Louis Van Gaal has signed a one-year contract extension with the German champions.
The Dutchman's current deal was due to expire at the end of the Bundesliga season but the club confirmed on Monday that Van Gaal's new contract will take him through until June 2012.
Bayern won the title last season but have endured a tough start to the current campaign. They are sitting ninth in the table after losing two of their opening six games and were defeated at home by league leaders Mainz on Saturday.
But chairman Karl-Heinz Rummenigge told the club's official website that they were keen for the coach to stay despite Bayern's patchy form.
"I always prefer doing things which might not have been expected," he said. "People are always extending contracts after victories, so this sends out a very good signal to the world at large about our opinion of the coach's value, even though we lost to Mainz."
Speaking ahead of Bayern's Champions League tie with Swiss team FC Basel on Tuesday, Van Gaal said: "My first priority is always the sporting perspective. Winning things is always important, and you can win things with a top club like Bayern Munich."
The 59-year-old led Bayern to the Champions League final for the first time since 2001 last season, where they were beaten 2-1 by Inter Milan, then coached by Jose Mourinho.
Van Gaal said his "outstanding" relationship with his playing staff and the board were major factors in his decision to commit.
He added: "I couldn't wish for anything better. The chemistry's right. You get to know each other properly in difficult situations. We're seeing it again right now.
"These are tough times, but the board is keeping the faith -- the faith which took us to the Champions League final in Madrid."
Rummenigge said Bayern valued their coach highly: "He does a superb job every day. We're recognizing that with this contract extension."
Bayern's captain -- Dutch midfielder Mark van Bommel -- welcomed the news. He said: "The coach signing a new deal is a very good sign. He's doing a great job."
One of Germany's stars of the World Cup, Thomas Muller, echoed the comments of his captain. "Van Gaal been extremely important for me so far, he's made a huge contribution to my career. That settles the matter, which is good for him, for us and for the club as a whole."