However, an agreement is reportedly far from being completed because Schiano requested a new indoor facility, upgrades to other facilities, and a significant increase in assistant coaches' salaries in the event that he takes the job.
The 53-year-old oversaw the Scarlet Knights from 2001-11. He led the team to a winning season and a bowl game - including five bowl victories - in six of his final seven seasons.
Schiano left Rutgers to become head coach of the Tampa Bay Buccaneers in 2012. Since that time, Rutgers has posted just two winning campaigns and one bowl-game victory.
Multiple key Scarlet Knights boosters were hoping Schiano could be hired in time for an announcement on Wednesday during the 150th anniversary celebration of the first-ever intercollegiate football game between Rutgers and Princeton, according to Steve Politi and Keith Sargeant of NJ.com.
Beyond Schiano, Rutgers has a "very short list of candidates" for the head coaching position, a source told ESPN. Alabama offensive analyst and former Tennessee bench boss Butch Jones reportedly interviewed for the position last week.
The Scarlet Knights fired former head coach Chris Ash in September after he went 2-15 over his last 17 games. Nunzio Campanile took over on an interim basis.
After leaving Rutgers, Schiano spent two years with the Bucs and three seasons as Ohio State defensive coordinator before accepting the same position with the New England Patriots this year. However, he unexpectedly resigned a month into the job.