The decision came after rumors that fellow Big 12 Conference member Oklahoma State was going to offer Self a huge contract.
Self coached the Jayhawks to the NCAA championship with a 75-68 overtime victory against Memphis Monday, and has a 142-32 record in five seasons in Lawrence, including four Big 12 Conference titles.
"These last three or four weeks have been an absolute whirlwind," he said at news conference. "I don't know if a guy deserves to have as much fun as I've had coaching this particular team and being around these guys this year."
"You never take anything for granted," said Athletic Director Lew Perkins. "As Bill said, I encouraged him to go talk to the people at Oklahoma State. Bill represents us with class -- on and off the court."