Carlton president Graham Smorgon has announced that Denis Pagan will stay on as Carlton coach for the next two AFL seasons.

Pagan had been under increasing pressure to keep his job after the Blues claimed a second successive wooden spoon this year.

Assistant coach Barry Mitchell made a pitch to the Carlton board on Wednesday to replace Pagan.

But the board has decided to honour the remaining two years of Pagan's lucrative contract.

The Blues are now expected to make sweeping changes to their assistant coaching staff.

Former Carlton champion fullback Stephen Silvagni is set to be offered an assistant coaching position with the Blues.

And Mitchell is likely to lose his job.

The Blues have only won 21 of 88 matches since Pagan replaced Wayne Brittain as coach four years ago.

Pagan coached the Kangaroos to the 1996 and 1999 premierships.

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