Bologna coach Sinisa Mihajlovic has been rewarded with a new three-year contract after pulling off a 'miracle' to secure top flight survival, the club announced on Saturday

The 50-year-old Serb's new contract will take him up to June 2022, with reports in the Italian press saying the deal is worth two-million euros ($2.27 million) a year.

"I wanted Bologna because this is an ambitious club," said Mihajlovic, who had described their survival as "something of a small miracle".

The former Yugoslavia international player transformed the club after replacing Filippo Inzaghi last January.

The club were 18th with just two wins from 21 games when the former Serbia, AC Milan, Sampdoria and Torino coach arrived, lifting them to a tenth-place finish.

Mihajlovic previously coached the club for a six-month spell in 2008-2009.

"It is an important moment for our Club," said the club's Canadian president Joey Saputo.

"The agreement with Sinisa is at the heart of an ambitious sporting project," he added.

Seven-time Serie A champions Bologna won their last Scudetto in 1964. Their last trophy was the UEFA Intertoto Cup in 1998.