Trap tells of his delight at new deal ahead of Euro draw in Kiev on Friday
GIOVANNI Trapattoni said he was relishing the chance to "grow and develop" the team after agreeing a contract extension which will run until the Brazil World Cup in 2014.
The FAI has rewarded the Italian for getting Ireland to next summer’s Euro 2012 finals with a new deal.
“I am very happy to continue my job with the FAI,” said Trapattoni.
His assistant Marco Tardelli, a World Cup winner with Italy in 1982, has also signed a new deal.
“I have always said that Marco and I believe very strongly in the work that we are doing to grow and develop the Irish team. It is a huge honour and a privilege to represent the Irish team and we look forward to continuing this important task.”
Trapattoni will travel to Kiev for Friday's Euro 2012 group draw, head of the tournament in Ukraine and Poland next June.
His deal will again be part-funded by business Denis O'Brien, who played a significant part in the FAI's original acquisition of the former European Cup winner.
FAI chief executive John Delaney said: "On behalf of the FAI board of management, we are very happy to agree a contract extension with Giovanni Trapattoni and his team of Marco Tardelli and Fausto Rossi.
"They have done fantastic work with the squad, bringing us to qualification for a major tournament for the first time in 10 years, increasing our world ranking to 21st and introducing many new players for the future. Giovanni's experience, professionalism and achievement in qualifying for EURO 2012 has impressed everyone including the players and the FAI board.
"The FAI board of management are particularly grateful to Denis O'Brien for his continuing contribution which gives the Irish team and supporters the benefit of Giovanni's services into the next World Cup campaign."
The Italian's brief had been to steer the national team to the Euro 2012 play-offs, which he achieved before securing the Republic's first appearance at a major finals for a decade with a 5-1 aggregate win over Estonia.
The 72-year-old said after the play-off success: "I have said I think we deserve a new agreement, Marco and myself. We are now happy with the squad. We find new players in almost every game.
"We have done what we were asked to do by the FAI and the Irish people. They chose us for this reason and I think we have given the perfect answer with qualification."
The Italian and his staff have previously taken two pay cuts with Ireland's financial difficulties biting hard, and there had been speculation that a significantly reduced package could be on the table.