DETROIT (AP) -- The Detroit Red Wings signed coach Mike Babcock to a four-year extension Monday.

"His stock as a head coach is probably as high as anybody's and he could've gone on the open market next summer," Red Wings general manager Ken Holland told The Associated Press. "We started talking about it in June and July, went our separate ways, and we knew this would get done. He loves it in Detroit."

The Red Wings are pretty fond of him, too.

Babcock helped the Red Wings hoist the Stanley Cup in 2008 and come within one win of repeating the next season against the Pittsburgh Penguins. Babcock also coached the host team to the gold medal at the Vancouver Olympics earlier this year.

He is leading the Red Wings for a sixth season after starting his NHL coaching career with the Anaheim Ducks.

Babcock, Holland and assistant Jim Nill are under contract with the franchise through the 2014-15 season.

"Mike's family has made roots here with their kids in school and it has become their home like it has for my family and the Nills," Holland said. "He knows we have committed ownership and he believes in our players, scouts, and front office so this made sense for him and for us."

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