DAVE Penney has signed a two-year extension to his contract meaning he is to stay as Darlington manager until June 2011.

With Quakers in the thick of the promotion race, chairman George Houghton has acted to reward Penney whose previous deal was due to expire at the end of next season.

Since taking charge following David Hodgson's departure midway through last season, Penney has transformed the squad and Quakers are now third and among the favourites to achieve the club's first promotion since 1991.

Saturday's 1-0 win at Mansfield Town was Darlington's third consecutive victory and third consecutive clean sheet, the 14th occasion they have achieved that combination this term.

In all Quakers have kept 17 clean sheets in 25 league matches - more than any team in the Premier League or Football League - and Penney said: "I am enjoying working at Darlington and believe that we are building a team and a football club that the town can be proud of.

"I have had the opportunity to shape the squad and bring in my own players and we are in a great position to push for promotion in the second half of the season.

"It the contract brings some stability to the club. There's been speculation that I was going to go somewhere but I'm fully committed to Darlington and I wanted to achieve something here. I want to push on and get out of this division."

The ex-Doncaster Rovers manager also expressed his appreciation to Houghton who appointed Penney in October 2006.

"The chairman has been very supportive ever since I came, he's made it known I was first choice for the job and nothing's changed," he added.

"Every time I've asked for something he has backed us, he's given us a decent budget and we spent £100,000 on Pawel Abbott in the summer.

"He wants to be a success. He's successful in his business and he wants to be successful on the football pitch so we're trying to fulfil that dream."

The new deal comes a week after goalkeeping coach Andy Collett was made full-time having previously been part-time and spending part of the week working at Livingston where ex- Quakers assistant manager Mark Proctor is boss.

Houghton added: "I have worked very hard to bring stability to this football club, both on and off the pitch and I am delighted that Dave has accepted my offer.

"Dave's ambition matches that of this football club and I will continue to give him all the support and backing he needs."

If Penney completes his contract, by 2011 he will have been manager for almost five years, making his tenure the club's longest since the 1930s when Jack Fairless was manager.

Hodgson spent just over seven years with the club but his tenure was split into three different spells, the longest for just under four years.

Meanwhile, despite bringing three players to the club already during the January transfer window - Ian Miller, Paul Mayo and Ryan Valentine - Penney continues to attempt to bring in new additions.

Joe Colbeck impressed while on loan earlier this season and Penney would like to bring him in again from Bradford City who have turned a bid down for the winger, though they would not confirm it was from Quakers.

Bantams boss Stuart McCall said: "We've had a bid but not for what we would value Joe at. He wants to be here and while he is performing like he is, Joe is an important part of the team.

"He's doing ever so well at the moment and his confidence is high. Hopefully he can keep that up all season.

"Going out on loan seems to have given him a lift and he is doing a good job for us. He is assisting with goals as well as scoring the one at Accrington and he does an awful lot of work on the defensive side."

Colbeck proved adept at playing on either flank in his six games for Quakers in which he scored twice before his loan spell was cut short by Bradford.

■ Darlington could have been leapfrogged in League Two by Hereford United last night but their fourth-placed rivals lost 4-0 at Chesterfield.