The person spoke on condition of anonymity because the school has not officially announced the deal, but said the two sides hammered out the five-year contract over the past 12 hours. It needs to be reviewed by the university's board of governors, and an official press conference might not happen until next Tuesday.
The agreement comes just more than two weeks after Rutgers fired Mike Rice after a video was aired that showed him grabbing and kicking players at practice, and using anti-gay slurs. The video was compiled from recordings taken during Rice's three years as coach.
Athletic director Tim Pernetti, a university lawyer and assistant coach Jimmy Martelli also resigned amid the scandal.
A board member familiar with the tentative contract said it has some legal issues that have to be addressed by the university's board. The member did not think the legal issues would be a problem, perhaps just a delay.
The board is not scheduled to meet again until June 20. A telephone conference call can be held to handle urgent issues, but board members need 48 hours' notice to do so. A board member who asked not to be identified had not received such notice by noon on Thursday.
Jordan was not immediately available for comment and Rutgers spokesman Jason Baum said the university had no comment.
Jordan played for the Scarlet Knights from 1973-77, and is the school's all-time leader in assists and steals. He interviewed for the position in 2010, as well, when Rice eventually landed the job.
Once again, this time around, Jordan was not the top choice. The Rutgers search committee hit the ground running last week, and connected with Rhode Island coach Dan Hurley first.
But Hurley, a New Jersey native who was a former assistant at Rutgers, agreed to a contract extension with the Rams through the 2019-20 season.
The committee then focused in on Jordan, and didn't look at any other avenues. In fact, Jordan, after coaching with the Lakers last Friday night, flew to New Jersey on Saturday, and met with Interim Athletic Director Carl Kirschner Sunday.
Jordan, 58, also met with Rutgers President Robert Barchi during the process. He will take over a program mired in scandal and doesn't have a wealth of experience in the recruiting world. Jordan has been a head coach in the NBA with Sacramento, Washington and Philadelphia. He has a 257-343 career coaching record in the NBA.
He was the point guard during the most successful era of the program's history, and was an assistant on coach Bob Wenzel's staff when the Scarlet Knights last made the NCAA tournament in 1991. As a guard, he helped lead Rutgers to the 1976 Final Four.
When Pernetti hired Rice away from Robert Morris in 2010, Jordan, who played for the Cleveland Cavaliers, New Jersey Nets, Portland Trail Blazers and the Lakers, also interviewed for the position. Ultimately, Pernetti saw more in the volatile Rice, who had just taken the Colonials to consecutive NCAA tournament appearances.
Jordan snared his first NBA head coaching job in Sacramento in March 1997, but was fired by the Kings after going 33-64. The Wizards fired him early in his sixth season after 197 victories and four playoff appearances.
Jordan coached one miserable season in Philadelphia in 2009-10 that saw the Sixers sink toward the bottom of the Eastern Conference. Jordan sold his half-court, backdoor-cut style Princeton offense as the way to turn Philadelphia into a contender, but the style never meshed with the talent on the roster. The 76ers finished 27-55 that season.
He also was an assistant with the then-New Jersey Nets, including two seasons when point guard Jason Kidd led them to the NBA Finals (2002, 2003).
The Scarlet Knights can only hope some of that New Jersey success rubs off on Rutgers, especially after the embarrassment of the last few weeks.
Rice was suspended three games and fined $75,000 by the school when video of his outrageous conduct was given to Pernetti last fall. But he returned to the bench, and the Scarlet Knights finished 15-16 overall, 5-13 in the Big East. Barchi agreed with the penalty. Rutgers, incidentally, went 3-0 during Rice's suspension.
The video showed numerous clips of Rice at practice during his three years at the school firing basketballs at players, hitting them in the back, legs, feet and shoulders. It also shows him grabbing players by their jerseys and yanking them around the court. Rice can also be heard yelling obscenities and using anti-gay slurs.
Rice was one of the nation's hot coaching candidates in 2010, and also interviewed with Fordham, his alma mater, after that season. But he wasn't able to push Rutgers into the upper echelon of the Big East, and went 44-51. Rice was 16-38 in the league, after going 73-31 in three seasons at Robert Morris.
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