The Spanish coach, after leading Al-Qadsiah into the Saudi Pro League last season, now has the club well placed for a title challenge.
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As such, management have rewards Michel with a new deal to 2027.
The former coach of Rayo Vallecano, Castilla, Sevilla and Olympiakos had a message for fans after putting pen to paper on his new deal.
"The story is not over and it will not end soon," Michel declared after inking his contract.