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Ralf Rangnick has put an end to speculation surrounding his managerial future by signing a contract extension with the Austrian national football team. Despite serious interest from Serie A giants AC Milan, the experienced German coach has chosen to continue leading Austria beyond the 2026 World Cup, as the side prepares for its campaign in North America.

In a major boost for the Austrian Football Association (ÖFB) just days before the start of their World Cup journey, Rangnick has officially inked a new deal that will keep him in charge until at least the end of 2027. The decision comes as a significant setback for AC Milan, who had earmarked the 67-year-old as their preferred choice to head a new sporting project at San Siro.

The former Manchester United interim manager met with Milan representatives in Vienna at the end of May. However, Rangnick ultimately decided to stay with the national team instead of returning to club management in Serie A. The new contract includes a performance-based clause stating that if Austria qualify for Euro 2028, the agreement will automatically extend to cover the tournament in Great Britain and Ireland.

Rangnick’s extension was not solely dependent on salary discussions. While the ÖFB met his financial expectations, talks also focused on his demands for a more professional and modern support structure. Following detailed negotiations, the federation agreed to enhance the backroom staff setup, ensuring the team remains competitive at the highest level of international football.

The Austrian FA believes that the clarity brought by this new contract will help the team maintain focus ahead of the tournament. “I am very pleased that we can share this great news with our supporters just before the World Cup begins,” said federation president Josef Pröll. He added that the agreement highlights unity within the organisation and that “the clarity now created is of great importance, especially for the team.”

Since taking over from Franco Foda in 2022, Rangnick has overseen a remarkable transformation of the Austrian national side. Although they suffered a disappointing exit against Turkey at Euro 2024, the overall improvement under his leadership has been evident.

In 45 international matches, Rangnick has achieved 27 victories and eight draws, boasting a strong points-per-game average of 1.98. This is the highest average recorded by any Austria manager since 1945 who has managed at least 10 games. Additionally, Austria’s home record has been outstanding under his tenure, with 14 consecutive home matches without defeat—a national record that has energised both the fans and the players ahead of their World Cup campaign.

With his future now settled, Rangnick can fully focus on guiding Austria through a challenging World Cup group. The team has been placed alongside defending champions Argentina, Algeria, and Jordan. Austria’s opening match will be against Jordan in Santa Clara, marking their long-awaited return to the world stage after a 28-year absence from the tournament.