This comes amid speculation he was set to depart his role as Scotland boss this year to take up a director of rugby post at Gallagher Premiership outfit Newcastle Red Bulls.

Townsend took the reins as Scotland head coach in 2017, and is the longest-serving national team boss of the professional era.

The former fly-half has quickly helped turn Scotland from Wooden Spoon candidates to Six Nations title contenders, boasting a winning record of 56 percent during his tenure.

Townsend has also overseen a dramatic change of fortune in the Calcutta Cup, with Scotland winning five of the nine Tests against England in his tenure. They also retained the title in 2019 after a thrilling 38-38 draw at Twickenham, the only draw of the Townsend era to date. Before he took over, Scotland had not won the Calcutta Cup since 2008.

As a result, Scotland have seen a record number of players drafted into the British and Irish Lions squads in that time, while he also served as assistant coach for the Lions in 2021.

Commenting on the news, Townsend said: "Being the Scotland head coach is a massive honour for me personally, a true privilege. The opportunity to coach my country at another Rugby World Cup is exciting, and I am hugely motivated to help the team perform to its potential.

"Over recent years, I have been really encouraged by the progress the team has made and the depth we have built in a number of positions. The experiences from our Summer Tour and also the Lions Tour will add an extra layer to our group. Having 12 players out on the Lions tour was tremendous for Scottish rugby and the players.

"It's going to be an exciting build-up period to the World Cup with the potential of a new competition for our summer and autumn fixtures in 2026 as well as two Six Nations Championships for us to attack. And, this Novembe,r we have a cracking run of home fixtures, which will include celebrating the centenary of our national stadium when we take on New Zealand. This occasion will underline the importance we place on connection to our supporters and our history.

Scottish Rugby performance director, David Nucifora, added: "Gregor is one of the most well-respected coaches in world rugby. The strength that this continuity of appointment brings in addition to the increased high-performance resources being made available places Scottish Rugby in a strong position leading into the next Rugby World Cup.

"He has built an impressive squad with increased depth across a number of positions that is now coming into its prime regarding international experience.

"We are excited about what is to come from the men's national team in the coming years and Gregor is the best person to take them forward."

Also commenting, Scottish Rugby CEO Alex Williamson said: "Having toured with the Scotland squad this summer I witnessed first hand the impressive culture that Gregor has developed and saw how connected and motivated the playing group is. That cohesion will be vitally important for the national team to be successful in the future.

"We have an exciting group of players which Gregor has nurtured, and I believe he is the right man to drive us forward, with full support of the Scottish Rugby Limited Board.

"The strong ticket sales for our matches at Scottish Gas Murrayfield demonstrate how engaged the nation are with Gregor's team and the way they play rugby. We are excited to see the relationship with the fans continue to develop this autumn, where the team have the opportunity to achieve results that will propel them into next year's Guinness Six Nations.

"I have talked in the past about the importance of continuity in our men's coaching environments, both because we believe we have excellent individuals in our structure and because it allows us to embed our high-performance reorganisation with coaches who are already fully committed to this critically important and substantial investment. I look forward to seeing Gregor and the men's national team being early beneficiaries of the changes."

The decision to offer Townsend an extended deal until the end of the 2027 World Cup also comes amid speculation that the SRU were lining up current Glasgow Warriors boss Franco Smith as his replacement, but he will instead remain at Scotstoun.

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