New England Patriots offensive coordinator Josh McDaniels has stunned the Indianapolis Colts by performing a U-turn after he initially agreed to become their head coach.
The Colts had confirmed the appointment of McDaniels on Tuesday after agreeing terms and a press conference was scheduled for Wednesday but the 41-year-old has changed his mind after Patriots owner Robert Kraft persuaded him to stay with an improved contract, media reports understand.
McDaniels was a key figure for the Patriots, who suffered a surprise 41-33 defeat to the Philadelphia Eagles in Sunday's Super Bowl, under the leadership of head coach Bill Belichick.
"After agreeing to contract terms to become the Indianapolis Colts' new head coach, New England Patriots assistant coach Josh McDaniels informed us that he would not be joining our team," the Colts said in a statement.
"Although we are surprised and disappointed, we will resume our head coaching search immediately and find the right fit to lead our team and organisation on and off the field."
McDaniels has won five Super Bowls with the Patriots in two separate stints with the franchise, who saw defensive coordinator Matt Patricia leave to join the Detroit Lions as head coach on Monday.