Sources told Schefter he would receive a 10-year contract worth almost $100 million to return to coaching.
Gruden, who coached Oakland from 1998 to 2001 and has been working as an ESPN analyst, is returning to the Raiders to replace Jack Del Rio, who was sacked after the regular-season finale on Sunday.
The date of the official announcement was first reported by RaidersSnakepit.com.
Gruden told ESPN earlier this week that he had a good talk with Raiders owner Mark Davis about returning to the organization and believed there was a "good chance" it would happen. Greg Olson will be Oakland's offensive coordinator, Paul Guenther will be defensive coordinator and Rich Bisaccia will coach special teams, La Canfora reports. He was later traded to the Tampa Bay Buccaneers - where he later won Super Bowl XXXVII - for three draft picks and $8 million dollars.
Gruden was the Raiders coach from 1998-2001 and compiled a 38-26 record with the team. Gruden holds an all-time mark of 95-81 over 11 seasons with the Raiders and the Bucs and is 5-4 in the playoffs. He was sent to the Buccaneers in a rare trade of an National Football League coach by late Raiders owner Al Davis. "Minority candidates were interviewed and we will wait and see the decision they make". He came back in 2004 and had a 30-34 record in four seasons, leading Washington to two playoff berths.