Sporting director Horst Heldt said the 43-year-old's position was under review after Sunday's 0-0 draw with Nurnberg but he has now been given a vote of confidence
It was thought that the 43-year-old trainer would be dismissed during the winter break, with Die Knappen currently seventh in the Bundesliga standings.
However, Schalke confirmed after a meeting on Monday that Keller will remain as coach.
"All topics were discussed constructively and openly, also with a clear analysis of what has to be improved," read a club statement.
"Jens Keller and his coaching team will work on this when the preparations for the second half of the season begin on January 3."
Keller took charge of Schalke in December 2012, having previously looked after the club's Under-17s, and penned a two-year contract extension in May of this year.