The decision comes after a transformative few months under the former Bayern Munich, Eintracht Frankfurt, and Monaco boss, who joined the club in February 2025 following the dismissal of Nuri Sahin.

Kovac inherited a struggling Dortmund side languishing in 11th place in the Bundesliga. Despite a brief dip to 13th, he quickly reversed the club's fortunes, guiding them to a stunning run of form that included seven wins in their final eight matches. Dortmund ultimately secured fourth place on the final matchday, clinching the final Champions League spot.

His impact didn't stop there. Under Kovac's leadership, Dortmund reached the quarter-finals of the Club World Cup - falling to Real Madrid - and have shown clear signs of revitalization, even if their 2025–26 Bundesliga campaign began with a dramatic 3-3 draw at St. Pauli, where they conceded twice and went down to 10 men in the final five minutes.

After penning the new deal Kovac expressed his ambition to return the club to their former glory.

"With honest work, clear decisions, and great enthusiasm, we want to help Borussia Dortmund return to our former strength. We still have a lot to do together," he said

A disciplinarian known for his focus on fitness and work rate, Kovac has made an immediate impact both tactically and culturally. Implementing a 3-4-2-1 formation, he's created a more stable and resilient squad. Notably, Dortmund's running and sprinting statistics have improved, highlighting the squad's physical resurgence under his demanding coaching style.

Kovac first rose to prominence by leading Eintracht Frankfurt to a German Cup win in 2018. He then secured a domestic double with Bayern Munich in 2018–19. As a player, he earned 83 caps for Croatia and played for clubs including Bayern Munich, Bayer Leverkusen, and Hamburg.

This contract extension signals not just confidence in Kovac's methods, but also a desire for stability and long-term planning at Dortmund - qualities the club hopes will lead to sustained success in Germany and Europe.

Borussia Dortmund manager Niko Kovac signs new contract until 2027