NEW ORLEANS —
The people told The Associated Press about the deal Friday on condition of anonymity because it hasn't been signed and final details regarding the length of the contract and financial compensation are still being worked out.
The agreement was first reported by Fox Sports.
Payton was due to begin his seventh season as the Saints' head coach in 2012 before being suspended the whole season by NFL Commissioner Roger Goodell in connection with the NFL's bounty investigation.
Payton signed an extension in 2011, but Goodell objected to certain language in that deal, leaving Payton's future uncertain until the deal was reached Friday.