Pat Lam will remain Blues coach in 2013, but only if he survives a review at the end of the season, ONE News understands.
Lam has been considering a contract extension for the past few months, and the embattled coach all but confirmed a deal had been made with the Blues and NZRU.
Assistant coach Bryce Woodward said he's also got a similar deal, with the same caveat.
"I have signed a contract with [the NZRU], subject to review," he said. "If Pat and I fail our review, then our jobs are up for grabs."
The re-signing comes after weeks of criticism for Lam, as the Blues continue to languish near the bottom of the Super Rugby table.
The Auckland franchise have won just one match from seven outings, and will have suffered a five-match losing streak if they cannot beat the Highlanders this Friday.
Lam was almost reduced to tears at a press conference last week, when he spoke about how racially-charged criticism of himself and the Blues had upset his family.
The NZRU did not comment on any signing.