Josh McDaniels bails on Colts, returns to Patriots

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INDIANAPOLIS (AP) -- Josh McDaniels has backed out of a deal to become the Indianapolis' Colts new coach, a decision that shocked the franchise hours after it announced his hiring.

The Colts confirmed McDaniels' decision in a statement Tuesday night after reports emerged that the Patriots' offensive coordinator had opted to stay in New England with coach Bill Belichick.

McDaniels had agreed to contract terms with the Colts to replace the fired Chuck Pagano. A news conference had been scheduled for Wednesday at Lucas Oil Stadium.

The team says McDaniels informed them Tuesday evening that he would not sign the deal.

"Although we are surprised and disappointed, we will resume our head coaching search immediately and find the right fit to lead our team and organization on and off the field," the Colts said in the statement.

The Patriots and McDaniels' agent, Bob LaMont, did not immediately respond to requests for comment.