The club have given their backing to the unpopular Allardyce but expressed a number of conditions for their backing.
The board have confirmed their desire to see a more attacking brand of football played by the team and they have almost set the manager a target of finishing in the 10 ten of the Premier League.
The full statement reads as follows…
West Ham United can confirm that manager Sam Allardyce will lead the Club into the 2014/15 Barclays Premier League season after constructive talks with the Club's Board.
The Board and Allardyce have held lengthy and detailed discussions on the Club's direction, values and philosophy and a positive way forward for next season has been agreed.
After listening to feedback from supporters, the Board have insisted on improvements to the set-up of the playing and backroom staff to ensure the team provides more entertainment next season.
The manager has agreed to recruit a new attacking coach to complement the existing coaching set-up as well as an overhaul of the Club's scouting and recruitment operation that will see the Board have a greater involvement in the players who are signed, as the Board will once again be investing considerable funds into the Club this summer. The Club have made clear that they want to see progression on the pitch and at least a top-ten finish as a result.
West Ham United Joint-Chairmen David Sullivan and David Gold said: "We have a very clear vision of how we want West Ham United to operate under our joint ownership. Although not everybody understands the West Ham Way, we do and we respect it as we have been supporters all our lives. We believe this is about a philosophy that is not just about the style of play, but the whole ethos that surrounds the Club.
"Sam was asked to give us a detailed presentation on his vision for next season and during this he assured us that he can deliver that ethos to West Ham United and we have agreed to support him with the resources that he needs. We have mapped out a way forward with him that will ensure our much-deserving fans have more to cheer about next season.
"We should also stress, though, that while improvements do need to be made, Sam deserves credit for the job he has done thus far after securing promotion in his first year and two respectable Premier League finishes in the two years thereafter. We have also seen the likes of Mark Noble, James Tomkins and Winston Reid all make huge progress under his management, which in turn contributed to our impressive record of 14 clean sheets last season.
"The truly historic opportunity of a move to the Olympic Stadium in 2016 forms a major part of our five-year strategy to take this Club forward and, while we have a duty to make sure we stay in the Premier League, we also want to make sure the performances on the pitch will befit a team playing in such a world-renowned stadium.
"We are absolutely committed to taking West Ham United to new heights and we want to see the Club continue on an upward trajectory next season. The 2014/15 campaign is crucial to our future and we are confident that Sam has the passion, experience and determination to make sure it is a success."
West Ham United manager Sam Allardyce said: "I look forward to taking the Club forward and improving the squad for next season to try and achieve the plans we have set out in our very productive meeting last week."