The San Francisco Giants extended Felipe Alou's contract through the 2006 season Wednesday, ending any speculation about whether the manager would return for a fourth season. The 70-year-old Alou and the Giants have a mutual option for 2007. Alou, who took over the team from Dusty Baker after the 2002 season, is one of only three managers in franchise history to win at least 90 games in his first two years. But San Francisco has struggled at the start this year with slugger Barry Bonds sidelined all season by a knee injury. "Usually it doesn't happen in a losing situation, but I appreciate the fact they have confidence in me," Alou said. General manager Brian Sabean said the timing of the extension was "appropriate." "It shows we have direction," Sabean said.