Chris Coleman has signed a contract extension and will remain in charge of Wales for the Euro 2016 qualifying campaign.
The 43-year-old has signed a two-year deal with the Football Association of Wales, ending weeks of speculation.
FAW chief Jonathan Ford said: "The [FAW] is delighted to announce that Chris Coleman has signed a new deal.
"Chris now has the opportunity to take Wales forward in the European Championships in 2016 in France."
The ex-Fulham, Real Sociedad, Coventry and Larissa boss had been linked with the vacant role at Crystal Palace, but he has now committed to the national side.
"This provides us with a period of stability and Chris can build upon his strategy with the present squad," Ford added.
"I look forward to working with him over the next couple of years as we all try and achieve our goal of qualifying for major finals."
Coleman's future with Wales had been the subject of speculation following a disappointing World Cup campaign.
Wales finished fifth in Group A, winning just three of their 10 games.
Coleman, whose current contract expires after Saturday's friendly with Finland in Cardiff, had said he was undecided about continuing in the role.
The former centre-back had been linked with the managerial vacancy at his old club Palace, who parted company with Ian Holloway in October and are currently bottom of the Premier League.
Coleman was joined at Friday's media conference to confirm his deal by FAW president Trevor Lloyd Hughes and chief executive Ford.
The manager may need to add to his management team after John Hartson's decision to step down as assistant boss last week.
Mark Bowen, the assistant manager to former Wales manager Mark Hughes, welcomed the news that Coleman will remain in his post.
"Everybody is under the impression that it should have been nailed and done a lot earlier," said Bowen.
"But now that it has, I think we can all get along with the job at hand, which is the long process of trying to qualify for a major championships.
"A lot of things have been said positive and negative about Chris' reign and I think in fairness to him, I was one of the ones saying let's have some continuity and let's look to the future.
"He finished off the [2014 World Cup qualifying] group on a positive note and I'm personally glad he's got the chance to take the country forward."