Chicago, IL (SportsNetwork.com) - The Chicago Bulls are reportedly working on a five-year contract with Fred Hoiberg so he can become the new coach of the team.

Sources told ESPN that the deal would be complete by the middle of next week, at the latest.

The 42-year-old Hoiberg, who played for the Bulls from 1999-2003, has been the coach at Iowa State the last five seasons. His coaching record with the Cyclones stands at 115-56. Iowa State has made the NCAA Tournament each of the last four seasons.

The Bulls need a replacement for Tom Thibodeau, who was fired on Thursday. Thibodeau spent the past five seasons as the team's head coach and led the Bulls to a record of 255-139. Chicago reached the playoffs in each of his five seasons and advanced as far the conference finals in the spring of 2011 at the conclusion of his first year.

However, the Bulls suffered a pair of first-round exits and two second-round losses over the next four seasons, and friction between the coach and front office apparently developed.

The New York Daily News reported the parameters of Hoiberg's deal was already being discussed while Thibodeau was still employed by the Bulls. The newspaper reported Hoiberg's contract with the Bulls is believed to be worth about $25 million.

The newspaper additionally reported Hoiberg is just waiting to be cleared medically before he accepts the job. He underwent a replacement of his aortic valve on April 17 this year.

Hoiberg also played for Indiana (1995-1999) and Minnesota (2003-05) in his NBA career. He underwent surgery in June 2005 to correct an enlarged aortic root and then joined the coaching staff of the Timberwolves after an attempt to come back as a player. Hoiberg was then employed in the front office of the Timberwolves before taking the job at Iowa State.