Appiah's future with the African nation was brought under question following their elimination from the 2014 FIFA World Cup.
Ghana lost two of their three matches at the Brazil showpiece, drawing the other against Germany, as they were knocked out following the group stages.
Earlier on Wednesday the Ghana FA officially apologised to their fans for the side's early exit and the organisation's chairman, Kwesi Nyantakyi, followed that up with news about Appiah's future.
"The executive committee has full confidence in Kwesi Appiah and in his ability to do the job," he told a news conference.
"They have instructed that the necessary action about his new contract should be completed.
"We also request the coach to review the current Black Stars and retain players only based on competence, commitment and discipline.
"The coach should be encouraged to add young additions to the team."
