"I am glad we could convince him to stay because he has been a major influence in our success story," said general manager Klaus Allofs. "He is one of the most important components of our team and it is really good to have him here for the next few years," added coach Thomas Schaaf.
The 30-year-old Baumann, who can play as a defensive midfield anchor or as a conventional centre-back, has made 189 league appearances for Bremen since joining from 1. FGC Nürnberg in 1999. He won a Bundesliga and German Cup double at the Weserstadion in 2003/04.
Baumann has been capped 28 times by Germany, although national coach Jürgen Klinsmann has not fielded him in a competitive match since last March. Nonetheless, the utility man will hope to earn a place in Germany's 2006 FIFA World Cup squad.
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