Real Madrid have secured Guti to a new contract.
Guti will continue in his coaching role at the club after putting pen to paper on a two year contract.
The ex-midfielder had considered his future and a step into senior management, having held talks with Turkish club Besiktas about becoming their assistant coach, but has opted to remain in Madrid, reports Marca.
Guti is highly valued by those within the club and some had expected him to be promoted to take charge of Real Madrid Castilla next season, though that looks unlikely for the time being.
The news comes as his former team-mate Raul and another ex-Los Blancos player in Xabi Alonso have joined the coaching set up within the club's academy.