Alvarez to stay at Sevilla next season
Alvarez was tapped in late March to replace Manolo Jimenez for the final 10 matches of the campaign and helped the Andalucian club secure a berth in next season's Champions League qualifying round.
He also led them to victory over Atletico Madrid in the King's Cup final.
Sevilla's board of directors had voted unanimously to extend the 55-year-old's contract until the end of next season, the club said.
Alvarez previously served as assistant under former Sevilla bosses Joaquin Caparros and Juande Ramos.