Guus Hiddink has quashed rumours about a move to Stamford Bridge by agreeing to sign a two-year extension to his contract as coach of Russia.

The Dutchman, whose troops face England in a Euro 2008 qualifying match next Wednesday, will stay in the job until 2010 after meeting with Russian football chief Vitaly Mutko.

"We share the same objectives as Hiddink. We will work together until 2010," Mutko said today.

Speaking at a press conference today, he continued: "Before the game with England we have spoken about a new contract and we have reached an agreement in principle about an extension to his contract.

"Hiddink has told me he did not have such talented players at South Korea and Australia."

Hiddink added: "I can confirm we have reached an agreement and I am happy about that. The Russian Football Association (RFU) is thinking about the future."

Earlier, Hiddink had played down speculation linking him with the Chelsea job. The 60-year-old's name has regularly been mentioned in connection with the post since Jose Mourinho's departure last month, in part because of his association with the club's owner, Roman Abramovich.

The billionaire reportedly contributes to Hiddink's national team salary and the Dutch coach claims Abramovich wants him in place for the long term.

Hiddink told

: "Since people continually associate me with Chelsea's owner, Roman Abramovich, I thought it would be a good idea to explain a little bit about our relationship.

"I have met him five times: four times in London and once at the PSV (Eindhoven) training complex. As for all those stories about me being a candidate for the Chelsea job, we never discussed it.

"I know that you can never say never in football, but that option would not have made sense.

"We have a project to reshape Russian football by 2014, with the 2010 World Cup as the first phase. Given Abramovich's long-term commitment and vision, it seems very unlikely that he would try to disrupt that process."