BBC Two eventually offered the celebrity chef a pay rise after Channel 4 boss Jay Hunt started a bidding war.
His salary at the BBC is now thought to be around £300,000 after he landed his own spinoff series.
"It's fantastic that Paul is staying with the BBC, where he will not only be continuing in The Great British Bake Off, but will soon be appearing in a new series, a straight cookery show rather than a competition, called Paul Hollywood's Bread," a source told The Mirror.
Hunt previously poached BBC stars Jimmy Doherty, Mary Portas and Hilary Devey.
The Great British Bake Off, a ratings hit for BBC Two, recently sold its format to French broadcaster M6. The show is already a success in Sweden and Denmark and deals for localised versions have been agreed in Australia, Poland, Belgium and Ireland.