Paul McGregor has signed a contract extension to keep him as St George Illawarra head coach until 2019.

The 49-year-old has been rewarded by the Dragons after guiding the team to third place on the ladder after 12 games this season, just four points behind leaders Melbourne Storm.

"I'm very honoured and thankful to be given the opportunity to continue coaching at this great club, a club that means so much to me personally," McGregor said.

"This is a very proud club, rich in history and tradition with a big passionate member and supporter base and I feel very privileged and grateful to have been afforded this opportunity.

"Whilst the contract extension is nice for me and my family, it hasn’t and won’t shift my focus from the current 2017 season. I've learnt a lot over these past few years and will continue to develop and do everything I can bring sustained success to this club."

The Dragons finished eighth in 2015 in McGregor’s first season in charge, before losing narrowly to Cantebury Bulldogs in the play-offs, and then dropped to 11th last year. But they have made big improvements this campaign and look set make the finals again.

Chairman Brian Johnston said: "Paul has proven that he is adaptable, he is determined and is always looking to improve which is exactly what he expects of his players, and these are key reasons as to why he has earned this contract extension.

"He is very much a team and club-first person, and a man who certainly has his priorities right in life and football. The board is very pleased with how this season has been progressing so far and are confident in the future under his direction as head coach."