ESPN.com's Marc Stein reported earlier that the deal was expected to be for multiple years.
According to the report, a deal is expected to be completed later Wednesday and Hollins will be paid more than $4 million a season.
Hollins met with Nets general manager Billy King along with members of owner Mikhail Prokhorov's group on Tuesday.
Hollins last coached in the NBA with Memphis during the 2012-13 season, but his contract was not renewed after leading the team to 56 victories and a berth in the Western Conference finals.
The Nets hired Hollins to replace Jason Kidd, who left to coach the Milwaukee Bucks after reportedly being denied power over player personnel decisions. The Bucks traded second-round picks in 2015 and 2019 as compensation for Brooklyn allowing Kidd out of his contract.
More from ESPN.com:
Hollins has been a favorite of Nets officials for some time and was pursued by Brooklyn to serve as an assistant to Kidd after the in-season departure of Lawrence Frank, but the former Grizzlies coach was determined to wait for a head-coaching opportunity.
Hollins was also chased hard this spring by the Houston Rockets to serve as the top aide to Rockets coach Kevin McHale in the event that he didn't land a top position.