updated 11:32 p.m. ET Jan. 21, 2004

DALLAS - Sean Payton is staying with the Dallas Cowboys, making him the second high-ranking staffer to remain with the team after looking into a head coaching job elsewhere.

Payton decided Wednesday to remain Dallas’ assistant head coach and quarterbacks coach rather than trying to lead the Oakland Raiders. He received a raise and a contract extension from the Cowboys, just like defensive coordinator Mike Zimmer did a few weeks ago when the University of Nebraska pursued him to lead its program.

“I’m really excited about moving forward with the Dallas Cowboys and continuing the job we started a year ago,” Payton said. “In regards to Oakland, I was certainly flattered and fortunate to interview with them and wish them the best.”

Although it was widely reported Tuesday that Payton had been offered the Raiders job, and had accepted it, the team never announced it. On Wednesday, Raiders owner Al Davis said they never had a deal.

“I don’t think Sean Payton turned down the job because Sean Payton was never offered the job,” Davis said in a rare meeting with reporters. “Sean Payton has a lot of good credentials, but I don’t know if that’s the direction we’re going.”

Cowboys owner Jerry Jones was traveling back from the Senior Bowl in Mobile, Ala., and did not immediately return a telephone message.

Payton and Cowboys offensive coordinator Maurice Carthon were among the candidates to replace fired Raiders coach Bill Callahan, who ended up taking the Nebraska job after Zimmer pulled out of consideration. Payton was the first person invited back to Oakland for a second interview.

The 40-year-old Payton, who would’ve become the league’s youngest head coach, fit Davis’ profile of hiring coordinators with offensive minds who don’t have previous head coaching experience. His last two hires were Callahan and Jon Gruden, two of Payton’s mentors.

Payton made his mark during four years with the New York Giants, especially while calling plays during their Super Bowl season in 2000. He had no ties to Dallas coach Bill Parcells until being hired last January. He and Carthon help Parcells with the play-calling.

Payton was the third QB coach for Quincy Carter and the first to get him to put up big numbers. Carter threw for 3,302 yards, the fifth-best total in team history, and led the Cowboys to a surprising 10-6 season and a playoff berth. However, Carter also had 21 interceptions and 17 touchdowns, leading to a passer rating that was among the league’s worst.

Carter goes into the offseason as the starter, but could face competition in training camp. At least he can be comforted in knowing he’ll still have Payton around to help him.

With Payton and Zimmer staying, the only change on Dallas’ staff thus far involves the receivers coach. John McNulty was fired and replaced by Todd Haley, who comes from the Chicago Bears after previously working with Parcells on the New York Jets.

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