The former Queen of the South and Kilmarnock boss took over at East End Park in May 2015 and guided the Pars to the League 1 title in his first season.
Dunfermline finished fifth then fourth in the Ladbrokes Championship in the last two years but currently sit seventh in the table, four points outside the play-offs, after Saturday's 2-2 home draw with Alloa Athletic.
Coach Stevie Crawford will take charge of the team for this weekend’s game against Dundee United at Tannadice.
