Berliln:Bayern Munich and coach Louis van Gaal have agreed to extend his contract at the German champions for one more year to run until 2012, the club said on Monday.
"The signature will be put down this week," club director Karl-Heinz Rummenigge told reporters prior to the team`s departure for their Champions League match at Basel.
Dutchman van Gaal, who took over in the summer of 2009, steered Bayern to the domestic championship and Cup double as well as the Champions League final in his first season in charge.
Bayern, however, have suffered a bad start to the current campaign and are in ninth place on eight points after six games after a 2-1 home defeat by leaders Mainz 05 on Saturday.
"We like doing things that are unexpected," said Rummenigge. "Everyone can extend contracts after victories. But it is a good public sign to reinforce the position of the coach after a defeat."
The 59-year-old former Barcelona and Netherlands coach took over last year after steering AZ Alkmaar to the Dutch title.
Bayern stormed through the domestic titles after a rocky start and lost in the Champions League final to Inter Milan and the contract extension does not come as a real surprise.
Club officials and van Gaal had been hinting for weeks a new deal was pending.