Ronny Deila has signed a new three-year deal with Valerenga but has taken a significant pay cut to remain boss.
The 44-year-old joined the Oslo club three years ago after he lifted two titles and a League Cup with Celtic in a two-year spell.
Deila left at the end of the 2015-16 season to be replaced by Brendan Rodgers .
He's also previously won a Norwegian title and Cup with former club Stromsgodset.
However, his return to Norway has not gone well and his side finished tenth in the league this season which placed his future in doubt.
But Valerenga have decided to put their faith in Deila by handing him a new deal, albeit with a sizeable reduction in pay.
Deila said: "I am incredibly happy and proud to continue to be a part of Valerenga. I feel the three years I've been here have been challenging, but I see more great potential than ever in our club.
"Many fans were unhappy after a disappointing season and I was too. But to try and improve gives me tremendous energy and drive to further develop Valerenga. We'll fight back.
"We will be an attacking team with plenty of energy. We want to be challenging for the title."
The club's general manager Erik Espeseth said: "Ronny Deila is the most important person in the development of young players in Valerenga.
"And we are delighted he has agreed to stay on at the club."
