The 64-year-old's previous deal expired after the World Cup in Brazil and, after weeks of negotiations, he has signed a new four year contract with the national team.
Jose Pekerman has signed a new contract which sees him remain as Colombia manager, the nation's football federation (FCF) announced.
Colombia has been anxious to tie the coach to a new deal after he guided it to the World Cup quarterfinals this year.
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However, after the 64-year-old's previous deal expired after the summer tournament, talks on fresh terms were put on hold, with the FCF revealing Pekerman had "personal commitments" to attend to.
After lengthy negotiations, it was today announced that Pekerman will remain in charge for at least four more years.
"After several weeks of work, with a view to the new project for the period 2014-2018, the Colombian Football Federation led by its president Luis Bedoya Giraldo, is proud to announce the continuation of coach Jose Pekerman," a statement on the FCF website read.
Pekerman's side was narrowly beaten by host Brazil in the quarterfinals of the 2014 World Cup. His new contract will see him manage the side in two Copa America campaigns and the 2018 World Cup in Russia.