Chairman Bill Tomlins (56) said "Michael has acted very professionally regarding the interest shown in him and being mindful of all the speculation, he has kept me fully informed of the situation over the past week. I am delighted that he has decided to stay at the club and will continue to be part of our footballing ambitions for the future. I am sure, like me, all our supporters will be pleased by Michael's decision."
The news will hopefully result in a boost to the players morale and an improvement in form, although a tough set of fixtures does await Mike Newell's team. However, it is possible that Newell may well be waiting for a Premiership side to come in for him rather than his long term intentions being staying with Luton. Newell had talks with Leicester earlier in the month, who are looking for a replacement for Craig Levein.