The Indianapolis Colts have signed Chuck Pagano to a four-year extension to retain the 55-year-old as the head coach, the team announced. On Thursday, Mike Wells of ESPN reported that the Colts would fire Pagano at the end of the season, which makes the extension even more out of the blue. 

Team owner Jim Irsay spent the entire afternoon at the team complex on Monday with Pagano to discuss the future. Obviously, the duo agreed that it would be best to keep the 55-year-old on the sidelines. 

"I'm happy to announce that we are moving forward with Chuck as our coach," Irsay said in a news conference Monday. "It was something I was hopeful would be the case. We gave it careful consideration. Really, it was something, you know my focus was always on winning and going forward in the best way we can to win and yes continuity plays a role. It is important.

"I'm really thrilled," Irsay said. "Chuck has earned the opportunity. It worked out really well."

Pagano played strong safety for the Wyoming Cowboys in college before turning his career into one of coaching. He coached at the college level from 1984-2000 with Southern California, Miami (Florida), Boise State, East Carolina and UNLV. He also coached for North Carolina in 2007.

The graduate of Fairview High School and Wyoming college got his NFL break as a secondary coach for the Cleveland Browns from 2001-2004. Pagano was the defensive backs coach for the Oakland Raiders (2005-2006), secondary coach for the Baltimore Ravens (2008-2010) and the defensive coordinator in Baltimore for the 2011 season. 

In 2012, Pagano was hired as a head coach for the first time in his coaching career. The Colts took a chance and the hire paid off. In his first season, Pagano lost in the AFC Wild Card Game, then lost the AFC Divisional Game in 2013 and finally the AFC Championship Game was lost in 2014.

"I've had a lot of great days in my life, but none better today," Pagano said. "I'm grateful and thankful to Mr. Irsay and his family. Words can't describe how I feel right now. I owe it to Jim for believing in me." 

The 2015 season, however, was not a new stepping stone. It was a step back, or a few steps backward for that matter. Indianapolis was a big time postseason 2016 Super Bowl pick, but the team finished 8-8, which was good for 2nd in the AFC South, but not good enough for a playoff spot.

Over four seasons with the Colts, Pagano is 40-23 in the regular season and 3-3 in the postseason. After using five quarterbacks in the 2015 season, Indianapolis will look to ride starting quarterback Andrew Luck to the postseason next season. Luck completed 162-of-293 passes for 1,881 yards, 15 touchdowns and 12 interceptions while dealing with injuries this year.

Even though the season was not the best, the players, including linebacker D'Qwell Jackson, backed the contract extension. Jackson believes that this is the step in the right direction to a Super Bowl. 

"I don't see any reason for change. I think Chuck is the guy for this team to lead us to a Super Bowl,'' Jackson said. "You look around the league, all the head coaches that have been around for years, there have been off years. If an off year is 8-8, I know some teams would give their right arm to go 8-8. I don't see a need for change.''

It is important to note that Ryan Grigson, the general manager, and Pagano reportedly have not gotten along at all in their history of working together. Believe it or not, the Colts announced that they will bring back Grigson for the 2016 season. 

“I’m convinced that we have the right stuff on my right and left here to win a World Championship," Irsay said. 

No financial terms were available.