Madrid: Joaquin Caparros has extended his contract with Mallorca after a magnificent season with the football club.

Caparros, who has previously coached Athletic Club Bilbao, Deportivo la Coruna and Sevilla, joined Mallorca early this season after Michael Laudrup had resigned as coach.

The club was involved in a battle against relegation, but Caparros guided them to an eighth place finish and with 52 points, only missing out on a place in Europe as a result of a last day defeat away to Real Madrid, Xinhua reported.

"I am very happy, with the time I have spent in this sport, what I want is to be able to work with people who show confidence in your work," said Caparros.

One of Caparros' major assets is his ability to work with young players and bring them into the first team, with money at a premium in Spanish football, he promised that he would continue along those lines.

"We are in crisis at the moment of making signings, so the youth system will be the raw material for next season. You have to give them confidence and we will see how far they can take us," he said.

Caparros had been linked with a possible return to Sevilla, where he had helped develop players such as Sergio Ramos and Jose Antonio Reyes, but Sevillas' decision earlier in the week to renew the contract of Michel Gonzalez for a further season, ended those rumours.

Elsewhere Rayo Vallecano coach Jose Ramon Sandoval is still waiting to see if his deal is extended with the club, who avoided relegation to the second division in dramatic fashion on the last day of the last season.

Meanwhile, Athletic Club Bilbao are still waiting to see if Marcelo Bielsa will continue next campaign. Bielsa, has taken Athletic to the Europa League final and next Friday his side will take on Barcelona in the Copa del Rey.

He has said he will not announce his decision until the end of the campaign. Speaking Friday, Athletic's Spain international defender, Javi Martinez admitted the players were 'intrigued ' by Bielsa' s decision. (IANS)