Three days after the talented Chargers melted down in a 24-21 playoff loss to New England, team president Dean Spanos announced that the embattled coach will be back for the final year of his contact.

Speculation grew following Sunday's loss that Schottenheimer might be fired due in part to the front office's expectations of a Super Bowl run, and to the coach's icy relationship with general manager A.J. Smith.

"I have decided that Marty Schottenheimer is the best person to lead the Chargers in the 2007 season," Spanos said in a statement Wednesday. "General Manager A.J. Smith and I agree on this fundamental point."

Spanos said Schottenheimer was offered a one-year, $4.5 million contract extension, with a $1 million buyout.

"He decided not to accept this extension and I respect his decision," Spanos said.

Schottenheimer, the most successful coach never to reach the Super Bowl, didn't give a specific reason for declining the extension.

"I'm very comfortable with fulfilling the contract I signed several years ago," he said at a news conference.

Spanos and Smith did not attend the news conference.

The Chargers failed to advance in the playoffs despite their NFL-best 14-2 record.