Well quickly refused Hearts permission to speak to McGhee after the Edinburgh club made an official approach on Friday. The former Brighton boss has since held talks with Motherwell chairman John Boyle, who has persuaded his manager to continue in his role.

A short statement on Motherwell's website said: "The club are delighted that it has successfully concluded negotiations with Mark McGhee and he remains Motherwell's manager. Both parties are delighted and look forward to next season."

McGhee had been heavily linked with a move to Tynecastle for several months as he led Motherwell to third place in the Clydesdale Bank Premier League and a UEFA Cup spot in his first season in charge.

Reports claimed he had been offered a salary four times his present deal and was seeking assurances that Hearts owner Vladimir Romanov would not interfere with football matters.

McGhee, who was interviewed for the vacant Scotland job in January but promised to remain at Fir Park until the summer following the death of skipper Phil O'Donnell, said in his Sunday Herald column that he felt entitled to speak to Hearts.

Motherwell fans feared he would resign early this week, but he has been persuaded to stay at the club and lead them into his first taste of European football.

A club spokesman could not expand on the details of the agreement but the official website stated that more details will be given later.

It completes a good day for Motherwell after striker David Clarkson was called into the Scotland squad for Friday's friendly in the Czech Republic.