Real Madrid manager Jose Mourinho has signed a two year contract with the Spanish champions, which will bind him to the club until 2016, according to the club's official Web site.

"Real Madrid and Jose Mourinho have reached an agreement to extend the coach's contract with the club until June 30, 2016," read the statement.

The 49 year old Portuguese, who initially signed a four year contract in 2010, has been very successful in his two year tenure with the Spanish giants. After helping Madrid win the Copa del Rey, by beating Barcelona in the final, in the 2010/2011 season, this season Mourinho led Madrid to their first La Liga title since 2008.

The win makes the Portuguese the first to win the league title in four different countries - Portugal, England, Italy and, now, Spain. Furthermore, in a warning shot to his rivals, Mourinho added he expected his team to improve even more.

"I've always said this squad is young and that its best years are yet to come. It isn't a squad with players on the verge of extinction or playing their final years of top tier football. The club, with its incredible social reach and structure, can adapt to the times and to what we're trying to do," the Daily Mail quoted Mourinho as saying.

"As a manager, I always try to grow and improve. I've loved the professional experience I've had of working for different clubs in different countries and cultures, and to learn from that while giving my best. I've loved that process," Mourinho was quoted by Sky Sports.

The Portuguese boss, who failed to secure the Champions league trophy following a defeat, on penalties, to Bayern Munich in the semi finals, feels he is lucky to work under Florentino Pérez, the club president.

"The overall project; the wish of the president to have a long-term project, which is something unusual in today's football; the confidence he has always had in me and my work; and the special feeling I always said was important when there were rumours about me leaving," Mourinho was reported by ESPN as saying.

"I've always said that's very important to me and that I would stay while the fans, the team and the club were happy and confident in with my work. I've got to know this club and its great qualities better, as well as the small problems it has like any other institution or person," he added.