More than a week after its season ended in the College Football Playoff, Texas has agreed to a new contract with coach Steve Sarkisian, a source told ESPN's Pete Thamel on Saturday, confirming a report. The sides came to an agreement Friday night in a deal that includes an extension.

A source told ESPN that it's a seven-year contract for Sarkisian, 50, that adds a year to his deal and makes him one of the highest-paid coaches in college football.

News of the agreement was first reported by The Action Network, which noted that the deal came after Sarkisian declined interviews with two NFL franchises for coaching positions.

The Longhorns, in their first season in the SEC, advanced to the title game and won two CFP playoff games against Clemson and Arizona State before being eliminated by Ohio State on Jan. 10 in the Cotton Bowl.

Texas played Ohio State tight before a late fumble return stretched the Buckeyes' lead to 14 points. Sarkisian said being the last remaining SEC team in the playoff in their first year in the league is something the Longhorns take pride in.

"I really believe this is a premier football conference in America because of the week-in, week-out task that it requires physically and mentally," Sarkisian said. "I know unfortunately for Georgia, they lost their starting quarterback in the SEC championship game, and I'm sure other teams in our conference had to endure things that can take their toll on your team, and that's no excuse. At the end of the day, we have to find a way to navigate our ways through it, but to be here on this stage to be back in the final four wearing that SEC patch on our jersey, we're going to do our best to represent it because this is a heck of a conference."

Sarkisian arrived at Texas in 2021 after serving as Nick Saban's offensive coordinator at Alabama in his previous stop. As head coach previously at Washington and USC, combined with his run at Texas, he is 84-52 overall. With the Longhorns, he is 38-17 and won the Big 12 title last season.

Texas will open next season with a rematch against Ohio State on Aug. 30 in Columbus, Ohio. In that game vs. the Buckeyes, the likely starter under center for Sarkisian will be Arch Manning, who backed up Quinn Ewers for two seasons and will soon get his chance to headline what will be one of the most anticipated quarterback situations in recent memory. The nephew of Peyton and Eli Manning and grandson of Archie Manning came to Texas as ESPN's No. 5 recruit in the 2023 class.

Arch Manning saw more playing time this season as Ewers dealt with injury, and he completed 61 of 90 passes for 939 yards and nine touchdowns. He also showcased big-play ability as a runner, breaking off a 67-yard scamper against UTSA and averaging 4.2 yards per carry.