Wotte said: "I am very happy to stay to help this club towards a better future.
"I didn't want to leave while we are in such a difficult situation and I want to stick with the players and the staff at this great club and continue our preparations for life in League One.
"I'm delighted to have been given the chance to continue the work that I started in January," he continued.
"I have also asked Michael Svensson to continue working as my assistant and he was also very happy to accept this role. Any other backroom staff appointments will be confirmed in due course.
"I am happy that we now have a clearer situation on the football side of things and we can step up our preparations for the new season over the next five or six weeks.
"We have our first pre-season friendly on Saturday at Eastleigh and that will signal the start of our more specific pre-season programme, rather than the more general fitness work that we have been doing so far to build up the players' physical conditions.
"Our aim is to get the best possible results when the season starts in August and that will now continue from the start of training tomorrow."
All eyes will be on Eastleigh's ground on saturday, not so much for the football, but for any potential new faces around the ground and the players response to this turbulent time. Saints Mad believe that Mark Wotte deserves his chance to lead Southampton on the right track and there were glimmers last season of his potential as a first team coach, whether he will be given that elusive contract if a buyer comes along remains a mystery. We only hope he is treated fairly and isn't a victim of the harsh world of football shakeup's.