The team announced Wednesday that it had reached an agreement in principle with Karl, the sixth-winningest coach in NBA history, and that a news conference would be scheduled after the deal is finalized.
Earlier on Wednesday the Kings announced that they had relieved Tyrone Corbin of his interim head coaching duties, saying in a statement that Corbin had chosen to remain with the organization as an advisor to the front office.
Former coach Mike Malone was fired after an 11-13 start. Things didn't improve under Corbin, who coached the team to a 7-21 record.
Yahoo! Sports is reporting that Karl's deal is for four years and $14.5 million.
This will be the sixth head coaching stop for the 63-year-old Karl, who took the Seattle SuperSonics to the NBA Finals in 1996 and was named NBA coach of the year in 2013 after his ninth and final season with the Denver Nuggets. He is 1,131-756 in 25 years as a head coach.