Carlito has decided to remain with WWE. Previously unhappy with his position in the company, the RAW superstar gave his notice to management several weeks ago. After a series of events (including Booker T heading to TNA) Vince McMahon decided it would be in his best interests to keep Carlito on the active RAW roster.
Vince and Carlito sat down and had a long talk at the North Charleston Coliseum in North Charleston, SC at the December 3rd edition of RAW. The meeting resulted in Carlito making the decision to remain with the company. WWE did not want to lose another Superstar to TNA but they also felt that Carlito was a valuable asset as they are trying to gain exposure in Central and South America and he is one of the few Superstars who can speak Spanish fluently.
The initial fallout between Vince and Carlito came after he complained to the Ottawa Sun about not being in WrestleMania 23 and because he wanted to turn heel again. His father Carlos Colon was also frustrated in his dealings with WWE because he believes WWC should be a developmental territory. He had also pushed to do joint shows with WWE but they have not had any interest.