"I'm very happy here at Sydney FC and the club matches the ambitious targets I am setting for myself," said Petkovic.
"This is the right option for me, it's now our target to win the Grand Final and play regularly in the Asian Champions League.
"The club is in a stable position and has excellent backing, while the support of the Members is another big factor in my decision.
"Sydney FC is recognised as a big club in Australia and I'm very proud to be staying for another two years."
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