A router bit system includes a bit (or bits) and a bit holding assembly for attaching the bit to the drive shaft of a router without the use of additional hand tools. The bit holding assembly, which is attached to the drive shaft of the router, includes a chuck having a bore for receiving a shank of the bit. A collar for engaging and releasing the bit from the bit holding assembly slides between a first position for engaging the bit and a second position for releasing the bit. The collar is biased to the first position for engaging the bit. The bit is capable of being received in a standard collet-type bit holder, such as a standard router collet or the like.