Swansea City boss Michael Laudrup hopes his new deal helps them compete in the transfer market.
Laudrup hopes the knowledge he will remain in charge next season gives prospective targets the confidence to commit to a move.
He said: "The contract is for the next two seasons, but the most important thing for me was at least people knew I was going to be here next season.
"I had one year left and everyone would have said I would probably leave in the summer.
"It's important to give out the right signal that I want to stay, so I extended for one year.
"It could be a factor in the transfer market particularly if players come from certain countries, like Spain.
"Now everyone knows what we want to do here for next season."