A person with knowledge of the decision confirmed Sunday night that Kelly is passing up a chance to coach in the NFL to remain with the Ducks.
The person spoke to The Associated Press on condition of anonymity because Oregon and Kelly haven't formally announced the decision.
The decision was first reported by ESPN.
Kelly had lengthy interviews this weekend with the Cleveland Browns and Philadelphia Eagles, and also talked to the Buffalo Bills. Last year, he had talks with Tampa Bay.
The 49-year-old coach earned a base salary of $2.8 million last season at Oregon and has five years left on his contract.
The Ducks, known for the innovative offense that Kelly devised, beat Kansas State in the Fiesta Bowl on Thursday night to finish the season 12-1.