"I'm really happy to be in the position I've been the last five years," said Petersen. "I think [Stanford] is a very special place. I just thought it was worth having a conversation about, but that's about as far as it went."
In a statement released Monday, Peterson said he would "continue directing the football program." He also announced the hiring of Brent Pease as offensive coordinator and Robert Prince as receivers coach and pass game coordinator.
This past weekend, ESPN's Joe Schad reported that Stanford had contacted Boise State about talking to Petersen. It's unclear whether Petersen ever spoke with Stanford athletic director Bob Bowlsby, who is searching for a replacement for Jim Harbaugh.
Boise State athletic director Gene Bleymaier said he granted Stanford permission to talk to Petersen, but also lobbied hard to keep him. Bleymaier added that Petersen made it clear he wants to see Boise State move forward with plans to build a football office and locker room complex, along with adding more seats to Bronco Stadium.
"A new football facility is definitely a priority for us," Bleymaier said.
Petersen is 61-5 in five seasons as head coach at Boise State, leading the Broncos to two BCS bowl wins and a 12-1 record this season.
As for Pease, he returns to Boise State after leaving Dec. 30 to become offensive coordinator at Indiana. But after Bryan Harsin left for Texas last Friday, Pease decided to return. He had served as the team's receivers coach for the last five seasons.
"I'm very honored and fortunate to be able to return to Boise State,"
Pease said in a statement. "While I was very much looking forward to the opportunity at Indiana, the knowledge and relationships I have with the players, coaches and administration at Boise State made it a very logical choice for me and my family."
Prince coached wide receivers for former Broncos head coach Dan Hawkins from 2001 to '02, and was Boise State's passing game coordinator in 2003 before moving on to coach in the NFL. He spent this past season as the pass game coordinator at Colorado.
"It's great to be back at Boise State and working again with Coach Petersen," Prince said in a statement. "Having closely followed the team's success since I left Boise and I'm very excited about the opportunity to coach the Broncos again. I've known Coach Pete a long time and our philosophies are a lot alike. It's a natural fit for me."
Andrea Adelson is a national college football blogger for ESPN.com. She can be reached at email@example.com. Information from The Associated Press was used in this report.