The former England coach looked certain to be sacked after following Saturday's unconvincing draw against Hoffenheim with a humiliating German Cup defeat at the hands of second division Energie Cottbus, before a disbelieving home crowd.
Over and out: Steve McClaren faces the sack at German club Wolfsburg after a woeful start to his reign
But he is off the hook for now, after Wolfsburg officials emerged from alengthy meeting to announce that McClaren was being given the go-ahead to continue a brief reign that has brought him growing criticism.
Sportsmail understands that, rather than dispense with McClaren just six months after recruiting him from FC Twente, Wolfsburg will try and offload some of their under-performing senor players and challenge theirunder-pressure manager to build a new team capable of mounting a bid for the Bundesliga title.
'We have got some cleaning up to do,' Wolfsburg's managing director Dieter Hoeness told the club's official website.
'We told the team eight weeks ago after the defeat in Nurnberg that their basic attitude must change.
'We did not get a reaction so now we have got to react. The fans do not deserve to see what they are seeing on the pitch, particularly given the exemplary way in which they supported us against Cottbus.
In demand: Unsettled striker Edin Dzeko is being tracked by mega-rich Manchester City
'We expect the coaches to act consequentially and to punish bad behaviour both on and off the field.
'Above all, we will push on with our rebuilding of a successful team next summer.
'It is difficult to do that in the winter, but we will see what we can do.
'It is going to be a painful time for one or two people around here. With this current team in this current situation, enduring success is nolonger possible.'
It will be McClaren's last chance to live up to expectations at a club who demand a return for the investment made by car giants Volkswagen, with the sack awaiting him at the end of the season if thereis no significant improvement in their fortunes.
The player exodus is likely to be led by Manchester City target Edin Dzeko, after a clear signal that he wants to leave in the January window.
Wolfsburg may have to lower their sights to find a buyer, though, after valuing him at around £38million.
McClaren begs for mercy as Wolfsburg line-up Jol to replace hapless bossMore McClaren woe: Wolfsburg crash out of German Cup to Energie CottbusCity set sights on raid for Torres as Wolfsburg demand £38m for DzekoMcClaren looking to take Arsenal midfielder Denilson to Wolfsburg
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