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Coaching staff Thierry Uvenard, Christophe Gardie and Denis Valour have also penned new deals and a club statement read: "Satisfied with the work of his coach and his staff for three seasons, the Toulouse president Olivier Sadran wishes to pursue the path of trust and continuity."
The 49-year-old Casanova led Toulouse to an unexpected fourth-placed finish in Ligue 1 in his first season in charge in 2008/09, an achievement which saw the club qualify for the UEFA Europa League.
A 14th-placed finish last season was a comedown from the highs of the year before, but Casanova has impressed this term by stabilising the side despite the loss of star striker Andre-Pierre Gignac to Marseille last summer.
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