Houston Rockets coach Kevin McHale will return to the team next season, sources confirmed to ESPN.com.
The news was first reported by the Houston Chronicle.
McHale was in the last guaranteed year of his contract, with a team option for next season.
ESPN.com's Ramona Shelburne and Marc Stein reported last week that team officials believe McHale "deserves more than one season" working with the youngest team in the playoffs.
The Rockets were eliminated by the Portland Trail Blazers on Friday night in Game 6 of the first round of the Western Conference playoffs.