Josh McDaniels has decided not to accept the Indianapolis Colts' head coaching job and will remain with the New England Patriots, the Colts announced Tuesday.

"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 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 organization on and off the field."

The Colts officially announced the hiring of McDaniels on Tuesday. The press conference was scheduled for Wednesday.

Patriots owner Robert Kraft spent the past 48 hours talking with McDaniels and improved his contract, ultimately convincing him to stay, sources told ESPN's Adam Schefter.

It's a bombshell that leaves the Colts searching for Plan B. That could be Kansas City Chiefs special teams coordinator Dave Toub, according to NFL Network's Mike Garafolo, though it was never reported that he interviewed for the vacancy.

The Colts were apparently ready for this eventuality, as they have three candidates ready to interview over the next 24-to-48 hours, a source told Pro Football Talk's Mike Florio.

The move is also a potential hint at the future of the Patriots. Spurning the Colts means McDaniels is unlikely to get another shot at a head coaching gig outside New England.