Manager Chris Coleman will remain in charge of Wales for their Euro 2016 qualification campaign.
Doubts over the 43-year-old's future had emerged last week after a press conference to announce Wales's squad for the upcoming friendly with Finland was cancelled at short notice.
However, despite the former Fulham boss being linked with the vacant Crystal Palace job, he has opted to renew his contract with the FAW as Wales attempt to qualify for the European Championship in France in 2016.
Coleman has won just four of his 15 matches in charge of Wales, but he did guide his team to a 1-1 draw away in Belgium in their last fixture.
