``I was confident that we'd come to some kind of an agreement,'' said Carlisle, who is entering his fourth year with the Pacers. ``Things worked out well. I think it shows we've got a common vision for the team, not only this year but for the future of the franchise.''

Carlisle, who is 146-100 in three seasons, said the executive title surprised him.

``Part of the agreement is an opportunity at some point to join the front office if I want to do that,'' he said. ``That's a very unusual gesture to make, and me and my family are very appreciative of it.''

Carlisle was heading into the final year of his deal, and it wasn't clear going into the off-season whether the team would offer an extension.

Indiana is coming off a disappointing, injury-plagued 41-41 season that ended with a first-round playoff exit. Team president Larry Bird said in May that Carlisle needed to instil more discipline and get more out of his players.

Carlisle has reached the playoffs in each of his three seasons, but his years with the Pacers were made more difficult with the soap opera that surrounded star Ron Artest. Two seasons ago, it was Artest's brawl with Pistons fans in Auburn Hills. Last season, his trade request, which was eventually granted, effectively ended the team's title hopes.

Bird said Thursday that none of that was Carlisle's fault. He added that Carlisle went 61-21 in his first year.

``Last year, there were a lot of things going on with the injuries and the other problems, but I think he deserves a fair chance,'' Bird said.