Athletic Director Dick Baddour made the announcement at a press conference Monday evening.
Baddour says school officials have confidence Torbush and the Tar Heels will rebound from this year's 3-and-8 season.
"We have full confidence in Carl Torbush and will support him as he continues to lead our football program. Clearly there has been a lot of speculation. I have completed my evaluation and have recommended that he remain as head coach," says Baddour.
Baddour has not denied that he had decided to terminate Torbush as head coach late last week.
Reports had been swirling regarding speculation last week thatTorbush would be replacedfollowing the end of season.
Torbush, who never lost his focus the past few weeks, received strong support from his players, who have played some of their best football in recent weeks.
"The last three games of the football season were probably as rewarding as I've ever been around because of the effort and focus and because of what our football team and coaching staff had to overcome. They continued to stay focused, and without a doubt, our last two football games were the best games of the season," said Torbush.
Carolina had huge wins against arch rivals N.C. State and Duke to end its 1999 football season.
A lack of fans have been evident in the stands all season, including Saturday's game against Duke. Still, many fans, angered by media reports that Torbush had already been fired, expressed their support for the Carolina coach.
Torbush met with his staff and team earlier in the day, and told them he would remain as head coach.
The show of support from fans and players at Saturday's UNC football game and the days leading up to it flew in the face of published reports that Torbush was out.
"You can go into his office, and you're not intimidated. You can go in there and sit down and talk with him as a friend or a coach," said student Louis Margetti.
Margetti calls Torbush a player's coach, but for some fans, nice guys do not win games or fill stadium seats. Some believe Torbush should be out.
"Based on the results of the last two years, I think everybody's hopes have been dashed. I don't think the fans are going to come back to the stadium next year," said student Tre Morgan.
Many fans were indifferent. They are happy that Torbush is keeping his job, but they will be looking to see what he can do with the team next season.