Borussia Moenchengladbach coach Lucian Favre has ended speculation linking him away from the club by extending his contract.

The Bundesliga club says in a statement that the 54-year-old Favre has agreed on a deal to stay to June 2015.

Favre says, ''I was in talks with club management for a long time and am very happy now with the contract extension and the challenging tasks ahead.''

Favre achieved a remarkable turnaround in Moenchengladbach's fortunes since taking over in February 2011.

The club was last in the Bundesliga, seven points from safety with the league's worst defensive record by far, but secured survival through a playoff.

The Swiss coach then led Moenchengladbach to a Champions League qualification spot last season.