Italy coach Roberto Donadoni handed Antonio Cassano an international lifeline on Tuesday and then spoke of his delight at having agreed a two-year contract extension.
Italian Football Federation president Giancarlo Abete confirmed an agreement with the 44-year-old had been reached.
The new deal, which will be signed in the coming days, will see Donadoni remain in charge of the Azzurri until after the 2010 World Cup.
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