Darryl Sutter and the Los Angeles Kings on Friday agreed to terms on a two-year contract, plus an option for a third year.
Financial terms were not released, but Sutter, 57, will make more than $3 million per season, according to ESPN.com.
"When we went through it, it was a clear and easy decision," Sutter said during a conference call Friday. "I wasn't interested in going elsewhere … it was never even a point of [hesitation]."
Sutter said assistant coaches John Stevens and Davis Payne also will return.
Video: Darryl Sutter signs three-year deal with Kings
The 2015-16 season was the last one on Sutter's current contract. His new contract will keep him with the team through at least the 2017-18 season.
"I think years are important," Sutter said. "And I tell a lot of young coaches that too. Careers are so short. They should find a good place and get what they can to make sure they take care of their families."
The family aspect is important to Sutter, who has settled in the South Bay area of Los Angeles, where he lives with his wife Wanda and one of his three sons, Christopher. Christopher has become part of the in-arena entertainment during Kings games at Staples Center.
"I think it's a big factor," Sutter said. "I think when you're older it's more important … Chris sounds excited."
Sutter was hired by the Kings on Dec. 20, 2011, to replace Terry Murray. In four-plus seasons he is 186-112-45, and led the Kings to Stanley Cup championships in 2012 and 2014, and to the Western Conference Final in 2013. He's 29 wins behind Andy Murray's Kings-record 215 wins.
This season the Kings had a team-record 48 wins and finished second in the Pacific Division but were eliminated in five games by the San Jose Sharks in the Western Conference First Round. That came one season after the Kings missed the Stanley Cup Playoffs.
But Sutter said he likes the nucleus of goalie Jonathan Quick, defenseman Drew Doughty and forwards Anze Kopitar, Jeff Carter, Tyler Toffoli and Tanner Pearson.
He understood there likely will be changes. Top-line left wing Milan Lucic, who had 20 goals and 55 points in 81 games, can become an unrestricted free agent July 1.
Sutter said whatever the roster looks like, he's ready for another challenge.
"I have lots of coaching left," he said.