Bosnia-Hercegovina coach Safet Susic on Wednesday extended his contract for two years, taking him into the campaign to reach the European Championships after guiding the first Bosnian team to reach the World Cup finals.

"I said that to leave the team would be painful for me. And that moment has not yet come," Susic told reporters after a meeting with the Bosnian federation that extended his deal.

"I am really happy to be continuing," added Susic, 59, a 1980s star with Paris St Germain and the former Yugoslavia who has been in charge of Bosnia since 2009.

"Safet Susic will manage our team in the qualifying for Euro 2016 in France, which will start for Bosnia with a match against Cyprus on September 9," the federation said in a statement.

Bosnia went out in the first round at the World Cup final finishing third in Group H with just a 3-1 win against Iran producing points. They lost to Argentina (2-1) and Nigeria (1-0).

He was criticised by some former internationals and media, but Susic said he expected Bosnia to qualify for Euro 2016 "and I hope that we will get a better result than in Brazil."

Bosnia are in Euro qualifying Group B with Belgium, Israel, Wales, Cyprus and Andorra.