Madrid: Real Madrid announced Tuesday that they have extended the contract of coach Jose Mourinho by two years.

The news will end rumours about Mourinho's future after he had been linked with possible moves to Manchester City and even a return to his former club, Chelsea.

The 49-year-old's previous deal was due to expire at the end of June 2014 and he will now remain at Real Madrid until the end of June 2016, Xinhua reports.

Mourinho joined Real Madrid in the summer of 2010, shortly after leading Inter Milan to the Champions League title. He took Madrid to the Copa del Rey in 2011, defeating bitter rivals FC Barcelona in the final and this season his side won the BBVA Primera Liga title, amassing 100 points in the process.

Madrid's main objective of lifting a 10th Champions League title has evaded Mourinho and that will almost certainly be the club's target for the 2012-13 season.

Next season will see Madrid's main rivals, FC Barcelona, perhaps suffer a period of adjustment as Tito Vilanova takes on the difficult task of replacing Pep Guardiola, who is leaving after four seasons in charge. (IANS)