"In response to the wish of the coach to continue the project started together a year ago, a wish welcomed with pleasure by the club as a sign of attachment and winning spirit, FC Internazionale announce the extension of Jose Mourinho's contract until 30th June 2012," a club statement read.

Mourinho was reportedly linked with a move to Real Madrid, but the Portuguese implied recently that it is almost impossible for him to leave San Siro.

The former Chelsea boss led the Nerazzurri to a comfortable Serie A title in his first season, even though they disappointed in the Champions League.