Jay Glazer of FOXSports.com is reporting that Tony Dungy will step down as head coach of the Indianapolis Colts.

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 intact.

Dungy is perhaps the most respected head coach among peers and players of this era. He won a Super Bowl two seasons ago and at that time many thought he would step down. Again last year it was predicted by some he would step down, but he decided instead to pick his predecessor and stay on for one more year.

Dungy’s Indianapolis tenure will finish after seven seasons with a record of 92-33, and a postseason berth in all seven years with the club.

Dungy has always talked about continuing his work with youth programs and has a lot more going on in his life than football. He’s an outstanding football coach and a great mentor of young men. Outside of Marvin Harrison’s incident last year, you don’t hear much about Colt players getting in trouble off field and that has a lot do with Dungy’s leadership.

Assistant head coach Jim Caldwell is expected to replace Dungy, which is a great thing for Indy. Caldwell is familiar with the players and the players are familiar with him. Consistency is vital for a franchise that is so used to winning. Caldwell should make a smooth transition.