England Under 21 manager Stuart Pearce has revealed that he has signed a two year extension to his current contract.

Speaking to BBC Sport following his side's 4-0 loss to Germany in the final of the European Under-21 Championships, the 47-year-old said, "Just before the semi-final I signed a two-year deal.

"I enjoy where I work, my employees and the players I work with. Why would you walk away?"

Pearce then described his feelings following England's loss, continuing, "Losing chews me up but it spurs me on to be a better coach and manager."

"It's as simple as that. I don't subscribe to boom and bust.

If we won I wasn't going to be the best coach in the world."

Finally, Pearce spoke about the future of his squad, stating, "From this squad 50% will go on for the next campaign."

"For those who have finished, they have served the Under-21s fantastically well. I've just asked of them the honour of meeting me at the hotel.

"I have to speak to them as a group and tell them how well they have conducted themselves over a two-year period. I will speak with the players that will finish and thank them.

"Then I will speak to the younger players and tell them what the expectations are."

Pearce is also a member of England coach Fabio Capello's support staff.