Walter Mazzarri has been confirmed as the Napoli boss for next season after holding peace talks with owner Aurelio De Laurentiis.
The latter was understood to be on the verge of replacing Mazzarri with Gian Piero Gasperini yesterday, until an agreement to continue was reached last night.
"After two years of active co-operation, which led to Napoli reaching the Champions League earlier than planned, the President and Coach Mazzarri laid the foundations of a new partnership to continue the programme of construction and growth," the club announced on their website.
Mazzarri had placed his own future into doubt after refusing to commit himself to the Azzurri despite their stunning campaign.
His decision to distance himself from the San Paolo outfit intensified rumours that he could possibly be set to join Juventus.
However, the latter have all but confirmed Antonio Conte as their new boss after the struggles of Gigi Del Neri this term.
Napoli sporting director Riccardo Bigon is being credited with bringing Mazzarri and De Laurentiis back together.
"I just did my job for the good of the club and the team," he stated on Sky Italia. "They cleared things up at their first real meeting together.
"It was just important to sit down and discuss matters. Now, with equal satisfaction, the relationship will move forwards."
Mazzarri is still under contract with Napoli, who finished third this term, until June 2013.
Gasperini, hotly linked with the Azzurri post on Monday, could now be named as a successor to Delio Rossi at Palermo.
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