"I'm not going anywhere," McCoy told the newspaper.
McCoy, who had previously said he would file paperwork to receive feedback from an NFL advisory committee about his draft prospects, is hungry for a national title after the Longhorns fell just short of a berth in the BCS Championship Game, the Statesman reported.
"I'm coming back because we have a solid coaching staff," McCoy said. "And I'm coming back because I feel like I can develop the young receivers we have."
McCoy, a redshirt junior, said Monday he had also decided against testing the waters for the draft or seeking an evaluation for his coaches at UT from the NFL.
McCoy set team records this season with 3,445 passing yards and 32 touchdowns. The Heisman Trophy contender also led the team in rushing with 576 yards.
McCoy had hinted before that he would stay for a fourth year at Texas.
"I've been blessed to be able to play here," McCoy told The Sporting News in October. "Not very many people get to [start] here for four years, so what an opportunity."