Martin Jol revealed on Thursday that Fulham had approached him to activate the clause in his contract that would see him stay at Craven Cottage until 2014.
Cottagers boss Jol confirmed he and the club held talks "a month ago or so" about extending his time in charge beyond the end of the season.
The Dutchman joined Fulham in the summer of 2011 on a two-year contract with an option of a third year.
He led them to their second highest ever Barclays Premier League points total of 52 in his first year in charge as they finished ninth.
They are currently on course to better that and lay eighth ahead of Saturday's trip to Arsenal.
"I'm happy to stay," Jol added.
As, it would appear, is captain Brede Hangeland, who Jol revealed had been offered a new deal to replace the one that expires next summer.
He said of the 31-year-old defender: "We made him a very good offer and he smiled for the first time since a couple of months ago, so I think he was quite happy. Hopefully, he will sign that because he's never injured and always plays. He leads by example and we would love to have him here for the next couple of years.
"You always hope people will be satisfied. We pay good wages and made him a very good offer.
"I didn't see him because I don't do the negotiations but the people who do that told me he was quite happy."