Talks have been ongoing for a number of weeks between Sweeney and the club following his spell as interim-manager in November.
Upon the appointment of Graeme Lee as manager, Sweeney reverted to his role as first-team coach where he will now remain as well as playing a role in the club’s new academy which is to start up again in the summer.
Sweeney has long since desired to be a part of the academy set-up while Lee and his staff have been keen to ensure the 38-year-old remains involved within the first-team picture.
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And Sweeney, who was presented with the John Fotheringham Award for services to North East football at the recent Football Writer’s Association Awards ceremony at Durham’s Ramside Hall Hotel, admits he is pleased to have signed the deal for the right reasons.
“I wanted to sign a new deal for the right reasons, not just because I have been here for a long time but because I can see the club moving forward in the right direction” said Sweeney.
“I have had good conversations with Graeme and Michael about where we can take this team and I have also spoken to the chairman who has always been good and honest about my role at the club.
"With the potential of the academy returning, it is an exciting time and a new opportunity for me to work with both the first team and the youth setup and build that bridge between them.”
The news of Sweeney’s long term future will delight supporters with the former Pools midfielder a fan favourite at the Suit Direct Stadium.
But it is also positive news for manager Lee who recently revealed his delight at the news.
"I’m delighted for him,” said Lee.
"I’ve known Sweens from being a player here and then to having him as part of the staff and what he brings, not just to the staff but to the team with the detail of his coaching, is fantastic.
"He’s a vital part, and with the academy getting set-up he’s going to be a part of that.
"He’s a massive part of this club. He’s a Poolie through and through, he’s a Hartlepool lad, he lives in the town and he wants the best for the club and that’s the type of people you want.
"But it’s not just because he is local, he’s very good at his job.”
Pools chairman Raj Singh also commented on the news of Sweeney’s new contract suggesting he is a critical part of the new chapter at the Suit Direct Stadium.
“We have seen over the years how integral he is to the development of the club,” said Singh.
"Whenever called upon, Tony has done his utmost for Hartlepool United whether that’s in a academy role, first team coach or as caretaker manager.
"You can see the great relationship that he has with the staff, players and supporters. It is critical to secure people like Tony who have the club at heart and as we look to push on in an exciting new chapter of league football.”