The 45-year-old said there is “so much still to be done” at the Scottish Premiership club as he passed up on the chance to return to England
Derek McInnes has rejected Sunderland after holding talks over the vacant manager’s role.
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Aberdeen confirmed on Wednesday that they had given the Black Cats permission to speak to the manager and assistant Tony Docherty as they prepare for life in the Championship after being relegated from the Premier League.
However, the former Rangers player has passed up the chance to succeed David Moyes to continue with the Dons after guiding them to second place in the Scottish Premiership.
“I have ambitions in the game and while there was interest from elsewhere, and I did talk to Sunderland, I feel there is so much still to be done here at Aberdeen,” he told the club’s official website.
“While we have lost players from last season, they will be replaced by signings of similar quality and our first challenge is to reach the group stages of the Europa League after coming so close in each of the last three seasons.
“We have improved season on season and that is not something I’m planning on changing.”
Chairman Stewart Milne spoke of his delight at holding on to the 45-year-old and his assistant.
“I am personally absolutely delighted that Derek and Tony have agreed to stay and have never doubted their commitment to the club,” he said.
“Given what Derek has achieved here, there is inevitably going to be interest from other clubs and in making the decision to stay, he has demonstrated how much Aberdeen means to him.
“It is now up to all of us, the board, staff, players and supporters to show how much we appreciate having him at the helm by getting right behind him in every way possible.”