The terms of the deal have not yet been disclosed.
Dixon, 50, was under contract with the Panthers until the 2022–2023 season and is among the highest paid coaches in college basketball.
Dixon played four seasons at TCU from 1984–1987 before being drafted by the Washington Bullets in the 1987 draft. He has taken Pittsburgh to the NCAA Tournament 11 times since being named coach in 2003. The Panthers (21–12) were knocked out of the tournament by Wisconsin in the Round of 64.
TCU fired coach Trent Johnson after four seasons last week.
The Horned Frogs haven’t appeared in the tournament since 1998. TCU finished 10th in the Big 12 with a 12–21 record this season.