The Indiana Pacers are hiring Rick Carlisle as their new head coach, sources told ESPN's Tim MacMahon.

Carlisle, 61, will sign a four-year, $29 million contract, the sources said.

This marks a return to Indiana for Carlisle, who previously was the team's head coach for four seasons (2003-04 to 2006-07) and went 181-147. He also was a top assistant under Larry Bird for three seasons (1997-98 to 1999-2000).

Carlisle resigned as the Dallas Mavericks' head coach earlier this month, ending a 13-year tenure with the franchise that included an NBA championship in 2011.

He replaces Nate Bjorkgren, who was fired earlier this month after one season.

The Pacers' five-year playoff streak ended this season when they lost to the Washington Wizards in a play-in tournament bid to earn the No. 8 seed in the Eastern Conference. Indiana was 34-38.

Carlisle has an 836-689 career record, having been the head coach for the Detroit Pistons and Pacers before arriving in Dallas in 2008.