Kingsley Jones will continue as Dragons coach next season, but the club have confirmed they are removing the director of rugby role.
Lyn Jones, previously the director of rugby, left the position by mutual consent because of illness in April.
He was absent for Dragons' win over Gloucester in the European Rugby Challenge Cup quarter-finals.
With former Wales captain Kingsley Jones at the helm again, his team were competitive but went down to Montpellier 22-12 in the last four.
"I am delighted to be given the opportunity to lead the region," he said in a statement.
"I am very proud of the fact that I was born and bred in this passionate rugby area, and it means a huge amount to me to be given this responsibility.
"Despite the frustrations of this season, I have no doubt about the potential and ability within the squad, and I am looking forward to the new season with excitement and enthusiasm."
Dragons, who are up for sale, finished 10th in the Pro12 table this season.
Chief executive Stuart Davies said the decision not to have a director of rugby meant Kingsley Jones' coaching team would be bolstered.
"Kingsley is highly respected by this group of players, his coaching peers in Wales and the wider rugby fraternity, and we absolutely feel that he is the right man to take charge of the team," he said.
"His appointment as head coach though, rather than director of rugby, means that we will be reviewing the roles and responsibilities of the wider management team, whilst Kingsley and I will also discuss bolstering the coaching team to add further support, skills and experience."