Robert Prosinecki will stay in charge of Bosnia-Herzegovina despite announcing his resignation after a 4-2 defeat away to Armenia.
Sunday's Euro 2020 qualifier loss in Yerevan left Prosinecki's side fourth in Group J with seven points from six fixtures.
Qualification for next year's finals therefore looks a tall task but Prosinecki has agreed to stay on regardless.
"Considering the objective situation and the current state of affairs, and taking into account the real circumstances and qualitative arguments, it was concluded that the executive board gives full support to Robert Prosinecki until the end of the Euro 2020 qualification cycle, as defined in the signed contract," said a statement released by the Football Association of Bosnia and Herzegovina on Tuesday.
"With certainty, changing the coach at this point would not have a positive effect, and our chances of qualifying through the group stage are still possible, realistic and achievable."
Bosnia-Herzegovina, who must finish in the top two to qualify, return to action next month with games against second-placed Finland and Greece, who are fifth.
Prosinecki was hired in January 2018 and enjoyed a strong start to life as Bosnia-Herzegovina manager.
The 50-year-old matched Bosnia's record unbeaten run of nine matches in November 2018, seeing his side top their Nations League group and earn promotion to league A for 2020-21.
But Euro 2020 qualifying has been a different story, as Prosinecki has seen his side struggle following an opening win over Armenia.
Bosnia-Herzegovina have only won one of their subsequent five matches in Group J, losing three of those games.
Sunday's defeat to Armenia appeared to be the end for Prosinecki, who announced his resignation after the game.
"I talked to everyone and no longer [will I be coach], I resign," the manager said after the match. "When I arrived, I believed we would make it to the Euros.
"We have not succeeded in this and my successor will have time to prepare the team for the Nations League. I am no longer the coach."
But Prosinecki is now set to continue, with Bosnia-Herzegovina set for vital matches against Finland and Greece next month.