Nearly two months of negotiations have resulted in a contract extension for Chicago Bears coach Dick Jauron.

Jauron signed a new three-year contract, which runs through the 2004 season. In essence, the Bears tore up the final season, the 2002 campaign, of the four-year contract he signed in 1999. It is believed the new contract is worth $2 million to $2.5 million a year.

"I'm really happy about being here. I'm really happy about coaching this football team, this group of guys, with this staff in this city and with this organization," Jauron said at a news conference.

In recent days, the Bears agreed with six of Jauron's assistants to three-year contracts.

Bears general manager Jerry Angelo said he would work with Jauron, who edged New England's Bill Belichick for coach of the year honors, on all decisions about players and the coaching staff. Angelo said he was pleased to have the contract issue settled.

"I knew he was doing a great job," Angelo said.

Jauron, 51, has compiled a 24-25 overall record in three seasons. He led the Bears, who had finished last in the division three straight years, to a 13-3 mark in 2001 and the franchise's first NFC Central championship since 1990. But in the team's first playoff appearance since 1994, the Bears were defeated by Philadelphia in a division-round matchup.

Without gaining the sometimes dubious label of "players' coach," Jauron has forged a terrific relationship in his locker room and veterans have been outspoken about the need to retain him for the long-term. Angelo, after refusing to comment public on Jauron's job status during much of the '01 campaign, announced late in the season the coach would receive an extension, but negotiations took longer than anticipated.

Jauron played eight seasons as a defensive back in the NFL with the Detroit Lions (1973-77) and Cincinnati Bengals (1977-80), and began his coaching career in 1985.

Angelo said his attention is now focused on signing quarterback Jim Miller, who is an unrestricted free agent. He added the Bears also will be looking for another quarterback to either challenge Miller for the starting position or to serve as a capable backup.

The Bears also announced they have hired Gary Moeller, who spent last season as defensive coordinator for the Jacksonville Jaguars, as linebackers coach.

Moeller, who was head coach at the University of Illinois from 1977 to 1979, succeeded Bo Schembechler at the University of Michigan in 1990, and was interim coach of the Detroit Lions from November 2000 to January 2001.

Moeller left Jacksonville after one tumultuous year during which players openly questioned his plans. He replaces Dale Lindsey, who was hired by the San Diego Chargers as defensive coordinator under new coach Marty Schottenheimer.

Len Pasquarelli is a senior writer for ESPN.com. Information from The Associated Press was used in this report.