There had been some question regarding Casey's future in Toronto following the hiring of new GM Masai Ujiri. But Ujiri said Wednesday that Casey will be back with the Raptors for the upcoming season.
"I'm excited about moving forward and growing this team with Coach Casey," Ujiri said in a release.
Casey is in the final year of a contract extension signed following the 2011-12 campaign.
The Raptors went 34-48 this season and missed the playoffs for the fifth consecutive year.
A Raptors front-office shakeup followed under new Maple Leafs Sports and Entertainment CEO Tim Leiweke. Longtime general manager Bryan Colangelo was relieved of his GM duties on May 21, and replaced with Ujiri 10 days later.
Executive vice-president Ed Stefanski and scout Alvin Williams, one of the most popular players to ever suit up for Toronto, were also fired.
The Raptors began the 2012-13 season with high hopes after trading for Kyle Lowry and Landry Fields and adding Lithuanian rookie centre Jonas Valanciunas.
But they went 4-19 to open the season, and spent the rest of it digging themselves out of that hole.
The 56-year-old Casey, known as a defensive specialist, was hired on June 21, 2011 after the Raptors decided not to pick up the option on Jay Triano's contract.
Casey joined the Raptors from the 2011 NBA champion Dallas Mavericks, where he was an assistant.