Bilbao (Spain), May 22 (IANS): Athletic Club Bilbao confirmed on Friday that Ernesto Valverde has extended his contract as first football team coach for one more season.

The 51-year-old Valverde has renewed his contract, which was due to expire in just over a month, until the end of June 2016, meaning he will remain at the Basque club for a third season, reports Xinhua.

The former player, who is in his second spell at the club, returned to the Athletic dugout in the summer of 2013 and in that campaign led Athletic to an impressive fourth place finish behind Atletico Madrid, Barcelona and Real Madrid to qualify for the Champions League.

Although the club at times struggled for form during the current season, Valverde has led them to the final of the King's Cup knockout competition and following a turnaround in form Athletic are currently seventh in the La Liga.

They are expected to assure a place in the Europa League again for next season if they are able to win at home against Villarreal on Saturday evening.

Saturday's game is certain to be an emotional event at the San Mames Stadium as club captain Andoni Iriola will make his last appearance in front of the home fans after announcing he was leaving at the end of this campaign.

The defender, who will be 33 next month leaves the club where he has spent his entire career after making a total of 570 appearances for the Athletic, first, second and third teams in a career spanning 16 years.