A delay in tying the 49-year-old to a new deal had generated some concern, but the UAE Football Association confirmed on Wednesday that Ali will remain in charge.
Ali guided his side to third place at the Asian Cup earlier this year - the country's best performance since finishing runner-up on home soil in 1996.
The new contract will see him bid to take the UAE to the World Cup for just the second time in their history, having failed to win a game in Italy in 1990.
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