Tunisia coach Roger Lemerre has ended speculation linking him with Australia by penning a new two-year contract with the north African side.

The Frenchman has spent the last four years coaching Tunisia and guided them to their first African Nations Cup success in 2004.

He was believed to be on the short-list to replace Guus Hiddink as the Socceroos coach but will now remain with Tunisia, who face Saudi Arabia in their opening Group H clash on Wednesday.

"We have signed," said the president of the Tunisian Federation, Hamouda Ben Ammar, adding that Lemerre has the option to extend his contract until 2010.

"We wish to continue in this direction."

Lemerre guided France to the Euro 2000 title but left following his team's poor showing in Korea and Japan four years ago when they exited at the group stage.