West Ham United have decided to retain manager Nuno Espirito Santo following the club’s relegation from the Premier League, with the board now focusing on an immediate return to the top division.

The Portuguese tactician held talks with the club’s hierarchy on Monday after West Ham’s relegation was confirmed, and both sides agreed to continue their partnership despite contractual clauses that could have allowed either party to walk away without compensation.

In a message addressed to supporters, the club confirmed its support for the manager, stating that Nuno remains fully committed to the project and eager to lead the team back to the Premier League at the first attempt.

The Hammers also highlighted Nuno’s previous Championship success, recalling how he guided Wolverhampton Wanderers to the league title in 2018 with an impressive 99-point campaign.

West Ham suffered relegation for the first time since 2012 after a disappointing season the club admitted fell below expectations.

Club insiders believe the drop to the Championship could cost the club close to £200m in lost income. The financial strain comes after West Ham posted losses of more than £100m in their latest financial report, with expectations of additional losses this season.

As a result, the club may be forced into major player sales, with captain Jarrod Bowen and Portuguese midfielder Mateus Fernandes both attracting interest from other sides.

Nuno, who replaced Graham Potter in September, struggled initially but oversaw a noticeable improvement in performances and results during the latter part of the campaign.

The club’s board said recent progress, particularly in team spirit and consistency since January, convinced them that Nuno remains the right man to lead the rebuild.

West Ham pointed to the team’s return of 25 points from their final 17 league matches — a rate of 1.47 points per game — which over a full season would have placed them seventh in the table.