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Team Canada head coach Carolina Morace stands at her team's bench before their women's international friendly soccer game against Team USA in Toronto May 25, 2009. REUTERS/ Mike Cassese

Mike Cassese/Reuters

The Canadian Soccer Association has made its peace with women's head coach Carolina Morace.

The CSA announced Thursday that Morace agreed to stay on through to next year's London Olympics as well as continue as coach of the women's under-20 national team.

Morace had threatened to quit following this year's Women's World Cup in Germany because of frustrations with the CSA.

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The players supported Morace by threatening to boycott future games, but later backed off after officials met with the coach.

Canada has improved to sixth in the FIFA world rankings, the highest the team has ever ranked since the list was introduced in 2003.

Canada opens the World Cup against Germany on June 26.

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