Rabah Saadane has agreed to remain in charge of Algeria's national team.
Saadane began his fifth stint as Algeria coach in 2007 and led them to qualification for this year's World Cup finals.
Algeria finished bottom of their group having failed to score a goal in South Africa, although they held England to a 0-0 draw.
But Saadane, 64, is set to stay on as coach despite the team's early elimination.
"I have given my agreement in principle to the president of the Algerian football federation (FAF), Mohamed Raouraoua, to continue my job as national team coach," he said.
Algeria's next game is set to be a friendly in Gabon on August 11.
Saadane will then set about steering Algeria to the 2012 Africa Cup of Nations, with their qualifying campaign beginning in September with a game against Tanzania.
Saadane first took charge in 1981 and helped them reach the 1982 and 1986 World Cups, the nation's two previous appearances in the finals.