Luis Aragones will stay as Spain coach until the end of UEFA EURO 2008 in June, the Spanish Football Association announced on Wednesday.
The announcement ends speculation that the 69-year-old could quit the post before the European championship.
RFEF president Angel Maria Villar said after meeting with Aragones on Wednesday he had "full confidence and fully supported his coach" and that Aragones was "fully committed to continuing his work until the end of the European championship."
According to Spanish media, Aragones had suspected that the federation wanted to pressure him into calling up Raul by prematurely naming his successor. Aragones has not selected the Real Madrid striker since September 2006.
Former Real Madrid coach Vicente del Bosque and former national coach Jose Antonio Camacho, who currently manages Portuguese giants Benfica, were seen as favourites to take over from Aragones.