Does the erase all content and settings in the IPhone's settings update software?

I'm running ios 6.1.3 GSM on IPhone 4 and I don't want to have the software updated to ios 7 I want to keep it on ios 6.1.3 and erase all data on the phone will using the erase all content and settings option in the IPhone's settings accomplish this?

Yes, if you use the "erase all content and setting" it will not update your phone it will just delete absolutely everything on the phone