Steve Coppell will remain as manager of Reading despite his team’s relegation from the Barclays Premier League. He has been considering his options since the end of the season, with many observers predicting that he would resign.

But Coppell has been hugely encouraged by the groundswell of support from the club’s supporters and although he has not signed a new deal with the club he has agreed to honour his current contract, which has 12 months remaining.

About 300 supporters staged a demonstration outside the Madejski Stadium last week, calling for Coppell to lead the team in the Coca-Cola Championship next season. "I’m very please to be staying," he said in a statement. "After the end of the season I needed some time to reflect and think about what was the best course of action for both myself and for Reading Football Club.

The reaction of the supporters had a beating on my decision, as did my relationship with the chairman and everyone at the club.

“I’m now looking forward to the new season and the significant challenge of trying to regain our place in the Premier League. “

John Madejski, the Reading chairman, was delighted that his manager had agreed to stay. "I am delighted to tell you all that Steve Coppell has come to terms with us, partially due to his love of Reading Football Club, he really likes it here," he said. "The fans demonstrated to keep him here, I demonstrated to keep him here.

"We all wanted him to carry on because he has done such a fantastic job. And he has now got a job to complete, ie getting us back into the Premier League.

"Never in my time before have I ever found such universal praise of a manager. I am absolutely delighted that Steve is honouring his contract to stay for another term. At the end of next season I don't know what will happen we will have to wait and see."