Lucien Favre has signed a contract extension tying him to Borussia Dortmund until 2021.

Swiss coach Favre agreed a two-year deal with Dortmund in May 2018 and led them to an unexpected Bundesliga title charge in his first season at the helm.

Having finished just two points behind eventual champions Bayern Munich, the former Borussia Monchengladbach boss has renewed his terms at Signal Iduna Park.

"I'm looking forward to continuing constructive and successful cooperation with the entire BVB team," said Favre in a statement after the new deal was announced on Tuesday.

"I'm delighted to have the opportunity to shape the sporting future of this tradition-steeped club."

Dortmund CEO Hans-Joachim Watzke added: "He has 100 per cent met the expectations. It is logical that we want to shape the club's future together."

BVB look set to push Bayern all the way again in 2019-20, having already finalised the signings of Julian Brandt, Thorgan Hazard and Nico Schulz.

"Lucien has created clear structures and developed our players," said sporting director Michael Zorc.