I-League runner-up East Bengal formally signed an extension of contract with its coach Armando Colaco on Thursday.
Colaco has been offered a one-year contract which will see him put in his second season in Kolkata.
There was some initial confusion between the two parties as Colaco had submitted a set of conditions to the club, including a pay hike.
The club put an end to the speculation by announcing Colaco as the coach for the 2014-2015 season, after the two came to an agreement.
Colcao, who is in his hometown in Goa, will arrive to take charge of the team once the domestic tournament calendar is announced, the club officials said.