Steve Clarke has agreed to remain Scotland head coach until 2026, saying he believes he has become a better "person-to-person" manager.
The 59-year-old took over from Alex McLeish in 2019 and led the side to the Euro 2020 finals.
The Scots begin their Euro 2024 qualifying campaign at home to Cyprus on Saturday.
"I've settled better into the job and that's all credit to the players," Clarke said.
"Because they have allowed me to feel comfortable in the job and managed to get the results that have kept us moving forward."
Despite what he views as the "one-off" disappointment of his side losing their World Cup play-off to Ukraine, Clarke believes "there's seems to be continual improvement" under his charge.
"It's credit to the players and my staff who get the results and performances on the pitch that persuade my bosses to talk me into signing another two years on to the contract," he said.
Clarke admitted that, had anyone suggested in his first year in charge that he would now have signed his second contract extension, "I would have laughed at you".
"I couldn't quite get my head around the nuances of the job and it is a different job," the former Kilmarnock, West Bromwich Albion and Reading manager said when comparing it with being a club boss.
"You have a lot of down time to think. Sometimes I was confusing myself - I was thinking too much and giving myself issues."
Asked about why he had extended his deal, he replied: "I've always preached the value of continuity of squad selection and, if that involves me a little bit, that's great.
"It keeps my wife happy. I don't know why, but she likes me about the house more than if you are in a full-time job."
Last year, Scotland finished top of their Nations League group, securing promotion to League A and a play-off route for Euro 2024 if they finish outside the qualifying berths.
Spain follow Cyprus, who were the opponents for Clarke's first match and win in charge, in visiting Hampden three days later, with Georgia and Norway making up Group A.
"The difficulty now is that the next improvements are very difficult to make," Clarke suggested as he reiterated his previous wish that "we don't want to be one-tournament wonders" after reaching the last Euro finals.
Scottish FA chief executive Ian Maxwell commented: "This has been one of the easiest decisions and conversations during my time as chief executive. Steve has united the nation behind a successful men's national team.
"It was important we demonstrated our commitment to Steve and his backroom team, and acknowledged the continuity that has been key to our improvement in the past four years.
"While everyone was disappointed not to have reached the World Cup in Qatar last December, securing promotion to Nations League Group A was another sign of the undeniable progress made."