Herbert announced his decision to continue his dual coaching roles at a press conference in Wellington this afternoon.
He will extend his contract with the Phoenix for three years.
“I’d love to go better, why can’t this club get to a grand final?” he says.
Talks are ongoing with New Zealand Football about his role with the All Whites, but Herbert says he is keen to aim for the next FIFA World Cup in Brazil in 2014.
Speculation has surrounded the 49-year-old’s future since New Zealand grabbed the attention of the football world with surprise draws against Slovakia, Italy and Paraguay at the recently-concluded FIFA World Cup in South Africa.
They ended up as the tournament’s sole unbeaten team after the Netherlands, the only other side with a chance of going through without losing, tasted defeat for the first time in their 1-0 loss to Spain in the final on Sunday.
The success of Herbert’s All Whites led to overseas interest in his services and he says he “had a few” offers from overseas, including approaches from top level club teams in Europe, Asia and Africa.
His contract to coach the national team ended after the World Cup but he has another year to run on his Phoenix deal.
The Phoenix kick off their A-League campaign at home to Gold Coast United on August 13.