The Suns removed the interim tag from coach Alvin Gentry's title on Saturday, and have now agreed to terms on a two-year deal.
The contract will pay Gentry $3.7 million over the two seasons, and is expected to be finalized on Monday or Tuesday.
It also includes a team option for a third season, according to the Arizona Republic.
"We can focus now on what we need to do to get better and get back to a team that everyone feared and one that made the playoffs," said Gentry.