INDIANAPOLIS -- Indianapolis Colts head coach Tony Dungy will return to the team for at least a seventh season, and his assistant Jim Caldwell will be given an enhanced role so Caldwell will be prepared to lead the team in the future, Colts officials said Monday afternoon.

"The good news is that Tony's back, and that he's back not only for this season but perhaps beyond that," team president Bill Polian said of Dungy, whose contract runs through 2009.

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Dungy said he has paused at end of each of the last three seasons to decide whether he could give his job and his family the attention that both deserved. Last week, he said Monday was the day that he would make his decision about the 2008 season.

"I wouldn't come back if I didn't think we had a chance to win and that I was the very best person to help this organization win," Dungy said Monday.

Dungy said he made his decision with his wife and that both are excited about the coming year.

"For me, the process was not a whole lot different than the (previous two) years," Dungy said.

Polian and team owner Jim Irsay stressed that they hope Dungy, who led the team to a Super Bowl victory last year, will stay past the 2008 season.

Also Monday, the team said assistant head coach and quarterbacks coach Jim Caldwell -- who Colts officials said last week was set to succeed Dungy if needed -- was promoted to associate head coach. Polian said Caldwell will be more involved in decision-making processes and that the team intends to make him head coach whenever Dungy decides to leave.

"As he goes forward, he will understand how we reach decisions, how we organize the franchise, how we manage the salary cap -- all things that a head coach has to know," Polian said of Caldwell, who will continue to coach the team's quarterbacks.

As long as Dungy is the head coach, Dungy will "make the calls as he always has," Polian said.

Dungy said earlier this month that his family has moved from Indianapolis to Florida and that his son has enrolled at a Tampa high school.

Dungy pointed out Monday that he has worked away from his family before, including his first two seasons in Indianapolis.

He said his wife's support was key to his decision to stay with the Colts.

"That is the thing that gives you confirmation. I have to make sure that I have the energy and the drive and everything, but if she ever said, 'I really think it's time for you to quit, time to be around more,' that takes precedence," Dungy told 6Sports' Dave Furst. "She was fired up about me coming back, and that gives you a good feeling."

Dungy has previously said he does not intend to be an NFL "lifer" and that he planned to retire by age 50. He's now 52.

Dungy said Monday that he thinks Caldwell's promotion is great.

"He's going to get some on-the-job training," Dungy told Furst. "Jim Irsay really feels like he's the guy to take over whenever I leave, and now (Caldwell) is going to be able to be in some of those meetings and see the draft preparation and salary cap issues and things like that."

The Colts were eliminated from this year's playoffs on Jan. 13 in a 28-24 loss to the visiting San Diego Chargers.

Dungy is 127-65 in 12 seasons as an NFL head coach, including six seasons with Tampa Bay. He is the only Colts coach to get double-digit victory totals and earn playoff berths in six straight seasons.