Joachim Low will lead Germany's bid to retain their World Cup crown following talks with the German Football Association (DFB).
Low's team exited Euro 2016 in the semi-finals following a 2-0 defeat to hosts France in Marseille, after which the 56-year-old said he would discuss his role with DFB chiefs.
The national governing body announced on Tuesday Low will see out his deal, which expires in 2018, and he will now concentrate on leading the holders to the World Cup finals in Russia.
Low said: "The end of a tournament is a good time to pause.
"We were all disappointed after the semi-final and the weeks leading up to and during the tournament were exhausting.
"But for me it's clear: despite this disappointment our team did not disappoint. We had the tournament's youngest team and I still see a lot of potential.
"I am sure this team will bring us plenty of joy and I am as happy as ever to be able to work with these players and keep developing them towards the World Cup in 2018."