La Russa who has managed the club for 14 years, agreed to a one-year contract with an option for a second year.
"It's a great place to manage," La Russa said at a news conference. "Selfishly, I wanted to be the guy that enjoys it again in 2010."
The Cardinals won the World Series under La Russa in 2006.
La Russa has managed in the major leagues for 31 years. He previously managed the Chicago White Sox and Oakland Athletics. Overall, his teams have a record of 2,552-2,217.
The Cardinals also announced that former home run slugger Mark McGwire, who retired as a player in 2001, was hired as hitting coach, replacing Hal McRae. It is McGwire's first coaching position.