The AFFA unanimously decided to retain the German coach, who turns 65 next month, despite Azerbaijan finishing second from bottom in their Euro 2012 qualifying group.
Vogts, who won the 1974 World Cup as a player, indicated earlier this year he was thinking of leaving the small Caucasus country on the Caspian Sea, saying that too much was expected of his team, ranked 113th by FIFA, back home.
In June, he was attacked by three men during a news conference following Azerbaijan's 3-1 home defeat by Germany in a Euro 2012 qualifier.
The much-travelled Vogts guided his native Germany to the European Championships title in 1996 and has also coached Kuwait, Scotland and Nigeria.
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