Williams, who signed an eight-year contract to coach his alma mater before the 2003-04 season, will make up to $1.8 million each year plus incentives based on the Tar Heels' performance on the court and in the classroom.

"Roy Williams is the most complete coach in the country," athletic director Dick Baddour said. "I knew when we hired him he was an outstanding basketball coach, but he has also exceeded our every expectation in the manner in which he runs a basketball program. He believes in character first, he coaches for all the right reasons and he is a first-rate ambassador of our university."

Williams, who will be inducted into the Basketball Hall of Fame in September, is 106-30 in four seasons at North Carolina and 524-131 in 19 seasons with the Tar Heels and Kansas. He won his only national championship in 2005.

"I am excited about coaching at Carolina and look forward to these next eight years," Williams said. "I am past the point in my career where people refer to 'that young coach Roy Williams,' but I know I can go this long. I just hope my players can put up with me."

The new contract will pay Williams an annual base salary of $325,000, a $30,000 expense account and supplemental income paid by the university ranging from $1.2 million to $1.5 million. Bonuses are included for qualifying for and advancing in the NCAA tournament and for graduation rates that meet or exceed the general student body.