The Sabres announced Monday they have removed the interim tag from Nolan and signed him to a three-year contract extension to be the full-time coach.
"I'm really excited about going with the next step forward and helping shape this team into a very competitive team and a team that will hopefully one day battle for a championship," Nolan said at a press conference announcing his extension.
Nolan was named interim coach Nov. 13 following the firing of coach Ron Rolston and general manager Darcy Regier. Current Sabres general manager Tim Murray said Nolan has proven to be the best man for the job.
"He's been in a lot of situations here that haven't been great," Murray said. "A lot of nights I've liked the way our team competed. We have to get him better players. Some games that we hang on and get a shootout loss or something like that, I think with better players and the way he coaches we'll get a better result. In trying times I've liked a lot of what I've seen."