Though it had been reported, since the middle of the postseason, that Patriots offensive coordinator Josh McDaniels would become the head coach of the Indianapolis Colts, following New England's playoff run, the veteran coach has decided he's going to stay with the Pats. 

ESPN's Adam Schefter
According to Schefterreleased their own statement
"After agreeing to contract terms to become the Indianapolis Colts' new head coach, New England Patriots assistant coach Josh McDaniels this evening informed us that he would not be joining our team," the team 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 organization on and off the field."

McDaniels, who failed in his first attempt at being a head coach in the league, has been a highly sought after commodity the past few seasons, but has been very reluctant to leave the comfortable confines of New England.  While he has had many suitors, he has bee extremely picky with his willingness to listen to offers, and there is a large school of thought that he might hold out until New England head coach Bill Belichick retires and try to take over for him in New England.  There currently is no timetable for Belichick's departure from the team, though he has expressed, in the recent past, that he does not plan to coach for much longer, whatever that means.