Terry Butcher last night rejected a move to bottom-placed npower Championship side Barnsley and opted to remain as manager of Inverness Caledonian Thistle.
The Highland club allowed Butcher to pursue talks but were celebrating the news that their 54-year-old English manager had made his decision to stay.
He becomes the second manager to turn down Barnsley since they sacked Keith Hill at the end of December, with Sean O`Driscoll having opted against taking the job on Sunday.
"I was pleased that Caley Thistle gave me the opportunity to talk to Barnsley, who were excellent to deal with," said Butcher. "But I have decided that my future lies at Inverness. We have been going extremely well to be second in the SPL, are still in the Scottish Cup and have a League Cup semi-final to look forward to later this month."
Kenny Cameron, the Inverness chairman, said: "We're delighted that Terry is to remain with us and the fans will greatly welcome the news. We felt that out of courtesy we should allow Terry the chance to meet with them. But it is a huge relief that he has opted to stay.
"These are exciting times at this club under the management of Terry and Maurice Malpas and we now look forward to maintaining what has been a wonderful season." Butcher took the Inverness job in January 2009, replacing Craig Brewster.
David Flitcroft, Hill's former assistant, is currently in charge of Barnsley. Flitcroft, former Sheffield Wednesday manager Gary Megson and ex-captain Neil Redfearn are the new favourites.