West Ham United have confirmed that Nuno Espirito Santo will remain as head coach next season, despite the club's relegation from the Premier League to the Championship.

The club announced the decision on Wednesday, following talks with Nuno that began on Monday. Both parties had the option to part ways without compensation after relegation, but West Ham's board opted to back the Portuguese manager for the Championship campaign ahead.

"Nuno made it very clear that he is highly motivated for the challenge of guiding West Ham United back to the top flight at the first time of asking. That must be the unquestionable goal for next season," the club said in a statement.

Board backs signs of progress

West Ham's directors acknowledged the pain of relegation but pointed to what they described as broader signs of improvement in recent months. Nuno signed a three-year contract when he replaced Graham Potter in September, with Potter having lost five of his first six matches in charge.

Nuno himself arrived in east London just weeks after being sacked by Nottingham Forest. Across 37 matches at the London Stadium, he won 12 games, guiding the Hammers to 39 points — the highest total accumulated by a relegated side in 15 years.

West Ham secured that tally with a victory over Leeds on the final day of the season, but it was not enough to preserve their top-flight status.

"Nuno has spent one previous year in the Championship and it was an outstanding success as he secured 99 points to win the title with Wolverhampton Wanderers in 2018," the club's statement added.

Neville urges West Ham to move fast

Sky Sports pundit Gary Neville had called on West Ham to retain Nuno ahead of the announcement, speaking on his podcast on Sunday. Neville also stressed the importance of keeping captain Jarrod Bowen at the club.

"The manager and Bowen are the two most important figures. I think they need to lock that in quite quickly," Neville said.

Neville warned that securing Bowen on a new deal would be challenging given the significant revenue losses the club face outside the Premier League, but argued it was essential for stabilising both the dressing room and the fanbase during a difficult period.

"It's about stabilising beyond this," Neville added, suggesting the club's ownership would likely have been planning for relegation for several weeks — both financially and in terms of squad resources.