Illinois coach Tim Beckman will return in 2015, the school announced Sunday.
Beckman's future was in doubt after posting a 6-18 record in his first two seasons.
However, Saturday's upset of Northwestern improved the Illini to 6-6.
"This is all about our team and the seniors who are our leaders," Beckman said in a statement. "We all understand that this is a work in progress and that we need to continue moving forward in a positive way. I'm very proud of our six wins so far this season and the toughness we showed down the stretch."
Despite being underdogs in their last five games, Illinois closed with three wins to earn the school's first bowl berth since 2011.
"It was important to see improvement in our football program this season," athletics director Mike Thomas said in a statement.
"Over the last month, we have won three of our last five games, including a pair of Big Ten wins over teams [Minnesota and Penn State] who are headed to the postseason. Our student-athletes have played their best football of the season down the stretch of a tough schedule that included nine bowl-eligible opponents.
"It's my expectation that with the upcoming bowl and another off-season of development, that Tim's continued leadership will keep Fighting Illini Football moving forward and even more competitive in the conference and nationally."