From Jay Glazer of FoxSports.com:
Tony Dungy is stepping down as head coach of the Colts -- at least that's what he's telling those inside the team headquarters, sources told FOXSports.com.
While the team has scheduled a 5 p.m. press conference, Dungy is walking around the team's complex saying goodbye to players and team employees and informing them that the transition should be a smooth one for new coach Jim Caldwell.

According to one source, Dungy explained that he has talked it over with his family and they believed this was the proper time to step down, while the Colts nucleus was still in tact.
Dungy is perhaps the most respected head coaching among peers and players of this era. He won a Super Bowl a couple of years ago and at that time many thought he would step down. Last year these same sentiments were predicted but he decided instead to pick his predecessor and stay on for one more year.
Dungy will not enter his eighth season with the team and finishes with a record of 92-33 and can boast that he made the postseason all seven years with the club.
The NFL will be losing a very classy act this afternoon...with all of the craziness with some of the players, it was always good to hear about people like Tony Dungy.
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Jan 12, 2009
12:08 PM
He's leaving large shoes to fill. Thanks for everything Tony. This Packer fan wants to thank you for making the NFL better.