Dieter Kosslick is staying put at the Berlinale - the festival director confirmed to Screen that his contract as festival director has been extended by another two years until April 30, 2013, four weeks before his 65th birthday.

It was originally scheduled to expire in 2011.

He also expressed optimism yesterday about the European Film Market (EFM) and defended the standard of films in this year's competition.

'I have spoken with all of the international sellers and they have done good business,' he told Screen. 'There has been more business than one might think.'

He added that he was 'very satisfied' with the new second market venue at the Marriott Hotel, but pointed out that this was not an ideal solution as it would be better to have everyone operating from the Martin Gropius Bau.

'The market is taking its course like those in LA and Cannes and the people go into the hotels,' Kosslick said. 'But concerning the screenings in the market, we will continue to give first priority for screening slots to those people in the Martin Gropius Bau.'

In response to critiques of the competition lineup in the media, he dismissed them, saying that 'As always, there was a lot of debate.One film I would have really liked to have had was Frost/Nixon because I think that is a film which would have fitted perfectly at the Berlinale.'

Kosslick added that he had been particularly moved by the screenings of Storm and The Reader.

A low point for Kosslick this year was the promotional strategies adopted by the organisers of the Cinema for Peace charity event. 'It's not the first time that I have been really angry about posters which say 'The Oscar with Brain',' Kosslick declared. 'That is so insulting for me and my friends from the Oscar organisation that I just don't want to have anything more to do with it. Secondly, for the past seven years, this charity event has not published which organisations have received the money.'

'And everyone who comes to Berlin from Hollywood says that Cinema For Peace says that this event is part of the Berlinale. I haven't anything against the idea of Cinema for Peace, but I don't want to have anything to do with Jaka Bizilj and the way his organisation behaves.'

Kosslick had spoken to Germany's Culture Minister Bernd Neumann about the possible damage to the festival's image and announced that he intended to launch an advertising campaign in US film magazines to press home the fact that the Berlinale has no connection with Cinema for Peace.