The person spoke to the Associated Press on Monday night on condition of anonymity because the contract had not been finalized.
Hoiberg had long been rumored as the successor to Tom Thibodeau, who was fired last week after five seasons in Chicago.
The Bulls announced in a release that they would make a major announcement Tuesday.
Hoiberg went 115-56 with the Cyclones, including four straight NCAA tournament appearances and consecutive Big 12 tournament titles.
Golden State Warriors guard Klay Thompson is one step away from being cleared to play in the NBA Finals.
Thompson returned to practice Monday in Oakland, a major step in the All-Star shooting guard's recovery. Thompson said he feels great and is just waiting on final clearance from doctors under the NBA's concussion protocol to play in Game 1 against the Cleveland Cavaliers on Thursday night.
“I expect to be” cleared, Thompson said. “I'm well on my way there.”
As long as Thompson remains symptom free, the team said he will be cleared to play in the finals.
Thompson suffered a concussion after getting a knee to his head by Houston's Trevor Ariza in Golden State's Western Conference finals clinching win Wednesday night.
Team doctors initially cleared Thompson to return to the game. He ended up not playing, and the Warriors said he started developing symptoms after the game.
Irving is still ailing
Kyrie Irving is resigned to not being 100% for the Cavaliers in the Finals.
The All-Star guard has been kept out of portions of practice in the last few days as he continues to recover from tendinitis in his left knee. On Monday, Irving said he's continued to receive treatment and sounded less enthused about his progress than last week.
“It's a day-by-day thing,” he said. “I'm going to continue to get treatment and do what it takes.”