RALEIGH, N.C. -- North Carolina and coach Butch Davis agreed to a one-year contract extension through the 2014 season, school officials said Wednesday.
Davis will also receive a raise of $291,000 that will push his annual income to about $2.1 million. The raise and extension are expected to be approved next week by the university's board of trustees.
Davis is 3-8 in his first season in Chapel Hill but had been rumored as a possible candidate at Arkansas -- his homestate university -- if the Razorbacks make a coaching change. Davis has repeatedly denied interest in any other jobs during the past month.
"My family and I felt like Chapel Hill was the right place last year, and are even more convinced after being here for one season," Davis said. "I'm confident we will continue to make progress in all phases of the football program."
Davis said he looked forward to a long, successful career at the university, adding: "This should put to rest any speculation of where I'll be coaching in the future."
Athletic director Dick Baddour said he and Davis first discussed the possibility of extending the coach's contract several weeks ago.
"We recognize the progress Coach Davis has made in rebuilding and generating momentum in the Carolina football program," Baddour said. "We recognize that we have one of the nation's best coaches and we wanted to ensure the stability of the program.
"We were aggressive in pursuing Coach Davis last year before the season ended and we wanted to be ahead of the curve this year," he said.
The extension was announced almost exactly one year after Davis took over the sagging Tar Heels program from John Bunting, who was fired midway through a 3-9 season in 2006. Davis signed the original seven-year contract worth about $1.9 million annually on Nov. 27, 2006.
Earlier this week, Davis expressed a desire to expand 60,000-seat Kenan Stadium by up to 10,000 seats, add luxury suites and club seating and construct an academic support center for the players.
North Carolina concludes Davis' first season Saturday at home against rival Duke.
Davis coached Miami from 1995-2000, compiling a 51-20 record before leaving for the NFL's Cleveland Browns and leaving behind the players with whom Larry Coker won the national title in 2001. He went 24-35 with the Browns before resigning in 2004 and then worked two seasons in broadcasting.
Davis was the third football coach hired by Baddour in the past decade. Baddour promoted Carl Torbush when Mack Brown left for Texas in 1997 and then fired Torbush and hired Bunting in 2000.