I believe this is what most ordinary Malaysians were hoping for as this is much more honourable way than the dubious "power transition" project that was announced earlier.
According to this malaysiakini article Umno leader: PM has decided to stay put Badawi will defend the UMNO President's post.
If he wins, no one will be able to challenge his authority untill at least the next GE and he can at least claim he won the position in a proper contest.
I don't think Najib is going to take up the challenge now but perhaps MY will decide to go for broke as he will appeal to those who want the top leadership posts to be renewed.
As this is not the official declaration, let's see what else happens in the next few hours. That BN meeting could throw up a few more surprises.