It is one of the richest coaching deals in rugby league history, believed to be worth around $2.5 million.

The man who coached Melbourne Storm to last year's premiership triumph phoned Broncos boss Bruno Cullen this afternoon to officially reject a massive offer to move to Brisbane.

Bellamy is now regarded as the number one coach in the game and will lead NSW into the State of Origin against Queensland this year.

His decision to stay in Melbourne is a huge bonus for the Storm but a devastating blow to the Broncos, who needed a man of his stature to replace six-time premier coach Wayne Bennett., who  is believed to have landed a $750,000-a-year deal with the Dragons.

Bellamy, a two-time Dally M coach of the year winner, claimed his first premiership as head coach last year and has helped turn a host of players from discards at other clubs into representative stars. He will also coach NS Wales at State-of-Origin level for the first time this year.

Melbourne had previously offered Bellamy only a one-year extension to his deal.

But, with Brisbane officials having met Bellamy's manager, John Fordham, twice in a fortnight, Storm was forced to increase its offer.

Cullen and club chairman Darryl Somerville met Fordham at his Sydney office on Monday.

Storm chief executive Brian Waldron will meet Fordham on Friday.

Melbourne lock Dallas Johnson yesterday put any concerns over whether Bellamy would be at the club beyond next year to one side when he signed a new long-term deal.

Johnson's three-year deal will keep him in Melbourne until the end of 2011.