Iowa State searched high and low for a new coach during the last week before finding an assistant right at home to replace Larry Eustachy.

Wayne Morgan, who just finished his first season on the Cyclones' staff, was introduced as coach at an afternoon news conference Wednesday in Ames.

Eustachy was eventually forced out after a report and photos of him partying on the campuses of Missouri and Kansas State were published in the Des Moines Register on April 28. Eustachy agreed to resign after reaching a $960,000 settlement with the university on May 5.

Morgan's promotion, reported by ESPN.com on Tuesday night, came on the same day Chattanooga coach Jeff Lebo, considered the latest favorite for the job, turned down an offer from Iowa State.

Lebo did not say why he turned down the Cyclones' offer, but sources said he had reservations about heading to an area in which he had few recruiting ties. He also had issues with moving his family to the Midwest.

Iowa State athletic director Bruce Van de Velde would not confirm an offer was made to Lebo.

Creighton coach Dana Altman was considered the favorited to replace Eustachy when Eustachy first resigned. But Altman withdrew his candidacy last week and is on the verge of signing a 10-year contract to remain Creighton.

Fresno State's Ray Lopes, who was expected to be interviewed by Iowa State, and Wyoming's Steve McClain also withdrew from consideration.

Morgan, 52, spent 12 years as an assistant at Syracuse before becoming coach at Long Beach State in 1996. He was 91-84 in six seasons with the 49ers.

At Iowa State, Morgan will retain assistant Bob Sundvold but won't keep assistant Steve Barnes, who was suspended by the university for allegedly making threatening remarks against school and athletic officials in a telephone call to a player's parents. Barnes has denied making any such remarks.

Morgan's hiring should quell most of the talk of players leaving the program. Sources said he still has to convince freshman Adam Haluska to stay.

Iowa State also has eligibility problems. Guard Tim Barnes and forward Jackson Vroman are academically ineligible but could regain their eligibility this summer. Morgan is expected to keep the incoming recruiting class intact, including the three Massachusetts prep players -- guards Will Blalock and Curtis Stinson and forward Reggie George -- he was instrumental in signing.

Lebo issued a statement Tuesday afternoon saying he was "looking forward at coaching at Chattanooga next year." He visited the Ames, Iowa campus Sunday and his wife Melissa joined him Monday before the two headed back to Tennessee on Tuesday.

"I am flattered that Iowa State had an interest in me," Lebo said in the statement. "Iowa State is a first-class institution and it has a first-rate athletics director in Bruce Van De Velde."

Lebo, 36, has coached Chattanooga only one season after coaching at Tennessee Tech. He played for Dean Smith at North Carolina and is considered a sharp tactician, but has no ties to the Big 12 or the Midwest.

Andy Katz is a senior writer for ESPN.com.