Mauricio Pochettino has signed a new five-year contract at Tottenham Hotspur worth up to £8.5m each year. The manager had refused in recent weeks to guarantee he would lead the club into their new stadium in September and he sparked alarm on the final day of the season when he appeared to suggest that his future was linked to how Daniel Levy approached the summer transfer window.

Pochettino called upon the chairman to “be brave and take risks” and it was clear that the Argentinian, who has led Spurs to three successive top-three finishes and Champions League qualifications, was positioning, at the very least, to win certain concessions. Pochettino has worked effectively on relatively meagre budgets during his four seasons at the club and is determined to strengthen the squad in order to challenge for major trophies.

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However, he is well aware that because of the financing requirements of the stadium – a further £500m, at the very least, must be found – he is likely to have to continue to balance signings with outgoings. When he delivered his end-of-season message and talked of the need to “create a new project”, he was trying to get swift decisions over player sales to gain more flexibility on his signings.

Pochettino is willing to listen to offers for Mousa Dembélé, Danny Rose and Toby Alderweireld – the last of those is a target for Manchester United’s José Mourinho. He was also seeking to mark his turf over the type of player he wants to sign. Typically, Levy has preferred younger ones with resale value but the manager would like him to consider more seasoned professionals.

Pochettino and Levy have since held positive talks regarding the club’s direction and the announcement that the manager has agreed to fresh terms could not be better timed. Pochettino has been linked with Real Madrid, where the future of Zinedine Zidane could come into sharp focus after Saturday’s Champions League final against Liverpool in Kiev.

Tottenham hope that Pochettino’s commitment will encourage some of their big-name players to extend their contracts. Negotiations are planned with Jan Vertonghen, Harry Kane, Dele Alli, Hugo Lloris and Christian Eriksen. Pochettino’s coaches, Jesús Pérez, Miguel D’Agostino and Toni Jiménez, have also extended their deals until 2023.

Pochettino said: “I am honoured to have signed a new long-term contract as we approach one of the most significant periods in the club’s history, and be the manager that will lead this team into our new world-class stadium. This is just one of the factors that makes this one of the most exciting jobs in world football and we are already making plans to ensure we continue to build on the great work that everyone has contributed to over the past four years.

“Daniel and I have spoken at length about our aspirations for this football club. We both share the same philosophies to achieve long-term, sustainable success. This is a special club – we always strive to be creative in the way we work both on and off the pitch and will continue to stick to our principles in order to achieve the success this club deserves.”