Oklahoma basketball coach Jeff Capel agreed to terms of a contract extension Thursday amid speculation that he would leave the Sooners to take a job closer to home at South Carolina.

The new deal would keep Capel, who took Oklahoma to the NCAA tournament in his second season at the helm, at the school through the 2013-2014 season.

Oklahoma athletic director Joe Castiglione said Capel’s new contract calls for the coach to be paid $1.05 million per year plus incentives. In addition, the contract includes a stay bonus of $100,000 per year, payable at the conclusion of six years.

“I want to thank the University of Oklahoma, especially President (David) Boren and Joe Castiglione, for the continued belief in me and in our basketball program,” Capel said. “Our program made tremendous progress this season and the new contract will allow us to build on our momentum.

After receiving a $100,000 raise last year, Capel had been making $750,000 annually on a contract that ran through June 30, 2012. He is 39-27 in two seasons at Oklahoma and recorded his first NCAA tournament victory as a coach last week against Saint Joseph’s.