A person with knowledge of the deal says Ernie Grunfeld and the Washington Wizards have agreed to a contract that will keep him as team president.
The person spoke to The Associated Press on Monday night on condition of anonymity because no announcement had been made by the team. A news conference could happen as soon as Tuesday.
Grunfeld's return was first reported by The Washington Post on its website.
His contract is due to expire at the end of this season. The Wizards beat NBA-worst Charlotte 101-73 Monday night for their fourth consecutive victory, but they are 18-46, the league's second-worst record.
Grunfeld joined the Wizards in June 2003.