John Beilein is leaving Michigan after 12 seasons to become the Cleveland Cavaliers' coach.
Sources told ESPN that he will receive a five-year deal.
Beilein reached a deal with the Cavaliers on Sunday and informed Michigan's administration of his decision to leave for the NBA on Monday morning, sources said.
"John is one of the most accomplished and innovative basketball minds and leaders in the entire game," Cavaliers general manager Koby Altman said in a statement. "He has a unique ability to create an outstanding culture that will promote the development of young players and provide a solid structure to the entire program; not to mention the fact that John Beilein wins everywhere he goes. We are excited Coach Beilein is joining our organization as we continue to build the foundation that any enterprise needs to be successful and competitive year in and year out."
Beilein offered his thanks to Michigan in a tweet.
The Cavaliers have been using the term "culture driver" internally when discussing the possibility of hiring Beilein, sources said. He's considered one of the elite offensive tacticians and teachers in basketball, a coach who has never been an assistant and climbed almost every level of basketball -- coaching high school, junior college and Division III, II and I. The final step in an odyssey that has brought him an 829-468 college record has been the NBA, and now Beilein makes the leap.
He led Michigan to two Final Fours and four Big Ten tournament and regular-season titles during his 12-year run in Ann Arbor.
"I was saddened when John told me this morning of his decision to leave Michigan for a head coaching position in the NBA. However, I am incredibly thankful for his 12 years of service to this university," Michigan athletic director Warde Manuel said in a statement. "Above and beyond being our all-time winningest coach, John is a tremendous role model for the game of college basketball. He is an outstanding educator, community member and a man of great integrity, and he and Kathleen will be missed. My priority now is to commence a full national search for our next basketball coach."
Beilein, 66, has entertained thoughts about the NBA for several years and had detailed discussions with two franchises -- the Orlando Magic and Detroit Pistons -- last year before deciding to return to Michigan.
Beilein and his wife didn't want to move far from Michigan, and the Pistons' borderline playoff roster with little financial flexibility to make changes made staying in-state less appealing. Cleveland's rebuild status, with point guardCollin Sexton and a 14 percent chance -- along with New York and Phoenix -- to earn the No. 1 pick in Tuesday's NBA draft lottery, appealed to Beilein.