The news shocked and rocked Oregon fans, as Oregon athletic director Rob Mullens had announced that Kelly had informed him of his intentions to stay on Jan. 7.
Kelly led the Ducks to unprecedented results, including three conference championships, four consecutive BCS bowl appearances and two BCS wins.
It has been speculated that offensive coordinator Mark Helfrich was next in line to be assigned the head coaching job, but Mullens said on Jan. 7 that there would be a national search if Kelly did leave.
If that remains true, expect Oregon to target several coaches with Oregon connections, like Boise State' Chris Petersen, Falcons offensive coordinator Dirk Koetter or Washington defensive coordinator Justin Wilcox.
UPDATE: Oregon athletic director is set to meet with the media today at 2 p.m. to discuss the coaching vacancy.