In returning to the franchise where he coached his first four seasons, Gruden will receive a 10-year contract worth an estimated $100 million, ESPN's Adam Schefter reported, citing sources.
Jason La Canfora of CBS Sports reports that a good deal of Gruden's staff is already in place, though Reggie McKenzie will remain the team's general manager. Gruden accumulated a 38-26 overall record as the Raiders coach and was 2-2 in playoff games during his four seasons.
Gruden has been the analyst for ESPN's Monday Night Football since 2009.
The Raiders entered this season with Super Bowl aspirations, but the team finished the year 6-10 after reaching the playoffs in 2016. Both the league and the Fritz Pollard Alliance, the diversity group that works closely with the NFL on its minority hiring practices, say the Raiders complied with the rule.
The Raiders' owner and managing general owner also may include an ownership stake in the offer to Gruden, also reported by Schefter.
He would replace Jack Del Rio, who was sacked after the team's regular season finale.
Ian Rapoport with NFL.com reports that Gruden will be introduced at a Tuesday press conference. Carolina Panthers coordinator Greg Olson is expected to be Gruden's offensive coordinator and Cincinnati Bengals defensive coordinator Paul Guenther is a top candidate for Oakland's defensive coordinator position.