Chapel Hill, NC -- (Sports Network) - The University of North Carolina has agreed in principle to a one-year contract extension and a raise for head football coach Butch Davis, the school announced Wednesday.

The deal, which is pending approval by the school's board of trustees, will give Davis a $291,000 raise, tipping his salary over the $2 million mark, as the deal he signed in 2006 was reportedly for $1.8 million.

Davis, 56, replaced John Bunting in November 2006 as head coach of North Carolina, which has never had a lengthy winning tradition in football. The Tar Heels have gone 3-8 this season, 2-5 in the Atlantic Coast Conference, with one game to play -- Saturday against 1-10 Duke. The Tar Heels finished 3-9 in 2006 under Bunting.

"We recognize the progress Coach Davis has made in rebuilding and generating momentum in the Carolina football program. Progress has been demonstrated by the hard work of the players on and off the field, the competitive games Carolina has played against one of the nation's most difficult schedules, the excitement each week at Kenan Stadium and the quality of the student-athletes he and his staff are recruiting," said athletic director Dick Baddour.

"We recognize that we have one of the nation's best coaches and we wanted to ensure the stability of the program. We were aggressive in pursuing Coach Davis last year before the season ended and we wanted to be ahead of the curve this year," said Baddour.

Davis found great success when he revived a then-suffering program at Miami- Florida in the late 1990s. The Hurricanes had been on top of college football for 20 years, but fell on hard times after heavy violations were levied against them by the NCAA. Davis, though, cleaned up the program and brought the Hurricanes back near the top before he left to coach the NFL's Cleveland Browns prior to the 2001 season. He led the Hurricanes to a 51-20 record in his six seasons, with three Big East championships and four bowl appearances.

"My family and I felt like Chapel Hill was the right place last year and are even more convinced after being here for one season," said Davis. "I'm confident we will continue to make progress in all phases of the football program. Tammy, Drew and I look forward to a long and successful career at the University of North Carolina. This should put to rest any speculation of where I'll be coaching in the future."