The former Chelsea midfielder has impressed since taking charge at The Hawthorns in 2009 and led the club to promotion to the Premier League in his debut season.
He has quickly taken to life in the top flight and Saturday's 2-1 victory over Fulham took the Baggies into the top four.
Di Matteo's exploits with West Brom have seen him touted for more high-profile jobs in the future, but the Italian is keen not to look too far ahead.
"I am very happy where I am and very grateful for the opportunity I have been given here," said Di Matteo.
"You can't have a long-term plan as a manager because you have a few bad results, you get questioned and then you get a ticket for your holidays.
"But my staff and I are very ambitious."
The West Brom boss also praised the increasing influence of Chris Brunt, who had a hand in both goals in the success over Fulham.
He added: "When we arrived last year he had a season when he was in and out of the team, but I think he has matured a lot since then and he has become a tremendous asset for us.
"He is the kind of player who every week gives you a performance of eight (out of 10).
"He is somebody you can go to war with - you know he is on your side."
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