Hadden said: “It was a huge honour in 2005 to be offered the opportunity to coach Scotland and it remains a real privilege to be asked to continue in the role.”

SRU chief executive Gordon McKie and Hadden negotiated the contract at a series of meetings which have occurred since Scotland’s World Cup campaign ended at the quarter-final stage in October.

McKie said: “Since Frank Hadden first came in to take over as national coach in May 2005, he has presided over a tremendous turnaround in the fortunes of the national team and he has now assembled a squad of talented young players who promise much for the future.

“Our recently-published new strategy for Scottish rugby sets demanding, yet achievable, performance targets for our national squad.

“We are confident that the platform for future success has been well and truly established under Frank Hadden and we are therefore delighted that he has agreed to take on the challenge of maintaining that momentum and taking Scotland to the next level.”