Laudrup extends Swansea deal
The former Getafe, Spartak Moscow and Mallorca coach joined Swansea in the off-season and has since guided them Carling Cup glory - their first ever major trophy - and eighth place in the Premier League with 10 rounds of the campaign remaining.
The Dane said he is eager to continue his project at the Welsh club, despite reported interest from a list of top European clubs, including former team Real Madrid.
"We've started something this season that I want to continue," Laudrup told the Swansea official website.
"I know there has been a lot of speculation (about my future), but I've always said that I am happy here and I never had any doubts I would stay.
"I am delighted to sign the new deal and I'm already really looking forward to next season. I hope there will be some very exciting things happening with the team and with the club in Europe."
Swansea chairman Huw Jenkins was delighted the 48-year-old manager has put pen to paper on an extended deal.
"This is a major boost for everyone involved with Swansea City, from the players, staff and Board of Directors through to the most important people of all, our supporters," Jenkins said.
"You can never guarantee how things will work out when you employ a new manager, especially after the success we've had in recent seasons, but I think everyone has seen for themselves that Michael has helped take this football club to another level.
"He is a pleasure to work with because he shares the same philosophy as everyone at this football club. He has ensured that we have progressed again this season and I am convinced his knowledge, experience and expertise will ensure we keep moving forward for the next few years."