He will receive a five-year deal, according to a source.
Reich replaces Chuck Pagano as coach after a search that took a few twists and turns. Indianapolis announced that Patriots offensive coordinator Josh McDaniels had agreed to take the job on Feb. 6 and scheduled an introductory news conference for the next day. McDaniels called Colts general manager Chris Ballard later that evening and reneged on the agreement, saying he decided to stay with New England. Ballard took the blame for the team's announcing the agreement with McDaniels before he signed the contract.
Ballard, in a news conference the following day, said he wanted "someone that's 100 percent committed to partnering with us and getting that work done."
Ballard moved swiftly to make his hire after the McDaniels fiasco. He interviewed Reich, New Orleans assistant head coach and tight ends coach Dan Campbell and Buffalo defensive coordinator Leslie Frazier in a three-day span. ESPN's Adam Schefter and Chris Mortensen reported earlier Sunday that Reich was the favorite for the job.
Reich's hiring ends a six-week coaching search in which the Colts went from being the first of six teams to fire their head coach to being the last of the six to fill the opening.
"We are extremely excited to announce Frank Reich as head coach of the Indianapolis Colts," Colts owner and CEO Jim Irsay said in a statement. "Frank has all the ingredients of a successful head coach: intelligence, innovation, character, organizational and leadership skills and a commanding presence. He also has a stellar reputation, and his myriad of life experiences and the people he has worked with make him the perfect fit for us and our fans. I feel extremely fortunate and could not be more excited for Colts Nation and the future of our franchise."
The Colts had fun with the signing, first tweeting out a photo of Reich inking his deal, then following up with another photo of Irsay and Reich, with Reich holding a copy of Sunday's Indianapolis Star as proof he signed his contract that day.
Reich, 56, spent the past two seasons in Philadelphia helping the Eagles' offense, led by quarterbacks Carson Wentz and (after Week 14)Nick Foles, improve from 22nd to seventh in the NFL this season.
"Frank is a tremendous coach and very deserving of this opportunity. He was a valuable member of our staff, and we have all benefited from working with him over the last two years," Eagles coach Doug Pederson said in a statement. "As good as he is as a leader and teacher, he's an even better person. We could not be more excited for him as he takes this next step in his career, and we wish him and his family all the best."
Reich, who didn't call plays with the Eagles, began his coaching career as an offensive staff assistant with former Colts coach Jim Caldwell in 2008 after retiring from playing 10 years earlier. Reich was Peyton Manning's quarterbacks coach in 2009 and '10 before coaching Reggie Wayne and the rest of the receivers in 2011. He also served as receivers coach in Arizona and offensive coordinator and quarterbacks coach with the San Diego Chargers.
The Colts are coming off a 4-12 season and have missed the playoffs in each of the past three years. The Colts will have about $85 million in salary-cap space and the No. 3 overall pick in the April draft. The key for the Colts, though, will be the health of quarterback Andrew Luck. Luck missed all of last season after having right shoulder surgery in January 2017. Luck, who has not thrown a football since the middle of October, is currently in southern California working with a throwing expert.
"He has not picked up a football, but he is throwing balls, working on arm speed," Ballard said on Feb. 7. "He's not going to skip a step. I don't know if you know Andrew, but Andrew is not going to skip a step. He's going to do everything right to get himself ready to play, and I'm very confident, he's very confident, that he's going to come back and prove a lot of people wrong. I'm very proud of the kid -- wouldn't want anybody else on our team. We want our team to match what he has inside."
The NFL Network first reported the agreement on a five-year deal.
After hiring Reich, real work begins for Colts
ESPN's Mike Wells breaks down the tasks the Colts and new head coach Frank Reich need to accomplish this offseason.