Gruden, now the color commentator on ESPN's "Monday Night Football", will be officially introduced as Oakland's new head coach on Tuesday, according to multiple reports.
ESPN reported that Gruden will receive a 10-year deal that could be worth close to $100 million.
Gruden spent four seasons as coach in Oakland from 1998-2001.
Despite not coaching in almost a decade Gruden has routinely been a magnet for head coaching rumors. Gruden accumulated a 38-26 overall record as the Raiders coach and was 2-2 in playoff games during his four seasons.
Gruden, now a Monday Night Football analyst, coached the Raiders from 1998 to 2001, winning AFC West titles in his last two seasons.
Oakland traded Gruden to the Tampa Bay Buccaneers, where he won a Super Bowl in his first season in 2003.
The Oakland Raiders have apparently completed their interview process and decided on their next head coach, and you will never guess who landed the job.
The Buccaneers went 12-4 in his first season and finished 57-55 with three playoff appearances in Gruden's seven seasons.
ESPN reported that Davis was in hot pursuit for Gruden with a persuasive offer that included an ownership stake in the Raiders. Gruden has already started putting together a staff with Cincinnati defensive co-ordinator Paul Guenther among those expected to join. Bisaccia was the special teams coordinator for all seven seasons Gruden was Tampa Bay's head coach.