Steve Coppell will stay on as Reading manager next season after having agreed to honour his contract at the club.

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• Coppell considers quitting Royals

There had been uncertainty over his future following the Royals' relegation from the top flight on the final day of the season, but chairman John Madejski confirmed Coppell's intention to remain as manager for the 2008-09 season.

Coppell, who is currently on holiday in the Far East, will now spearhead the campaign to win immediate promotion back into the top flight.

He told the club's official website: "I'm very pleased to be staying. After the end of the season I needed some time to reflect and think about what was the best course of action for both myself and for Reading Football Club.

"The reaction of the supporters had a bearing on my decision, as did my relationship with the chairman and everyone at the club.

"I'm now looking forward to the new season and the significant challenge of trying to regain our place in the Premier League."

Coppell joined the Berkshire club in October 2003, taking over from Alan Pardew and becoming the Royals most successful manager in their history after guiding them into the top flight.

Once in the Premier League, Reading stunned their rivals by finishing eighth in their debut season before their relegation to the Championship at the end of this season.