Dick Advocaat has said he made "the right decision" to shelve retirement plans and sign a one-year deal at Sunderland amid reports he will be given £50 million to spend in the summer.
On Thursday, Advocaat, 67, confirmed he had agreed to become the permanent manager at the Stadium of Light -- days after announcing that he would quit.
Dutch newspaper De Telegraaf quoted Advocaat, 67, as saying he had changed his mind after chairman Ellis Short repeatedly contacted him.
He steered Sunderland to safety after being appointed for the last nine games of last season, shedding tears on the pitch after they had secured their top-flight status with a goalless draw at Arsenal.
Now the Black Cats are poised to invest in a squad which the Dutch coach said needed around half a dozen quality players added if another battle against relegation was to be avoided.
Advoccat told the Sun he was looking forward to the challenge ahead, adding: "After a lot of discussions with Ellis Short and [sporting director] Lee Congerton, they convinced me that I am the right man for the club.
"It was a great feeling to be part of Sunderland in the last few months -- the experience was something very special.
"After talking with Lee, Ellis and of course my family, we all agree it is the right decision."
Congerton told PA Sport Advocaat "was always our No. 1 choice, and we were determined we weren't going to take no for an answer."
He added: "I have been in constant contact with him over the last two weeks, and I'm absolutely delighted that he has agreed to return.
"In just a short space of time, he has bought into the club wholeheartedly and understands exactly what we need now in order to move forward.
"We have a lot of work to do to prepare for the season ahead, and that starts in earnest now."