The Raiders have called a significant news conference for Tuesday, at which time they will introduce Gruden as the team's next coach, a league source confirmed to ESPN.
The Raiders fired Jack Del Rio as their coach last Sunday, just after completing a 6-10 season.
Palestinians say Jerusalem "not for sale" after Trump threatens to cut aid
In response, the Palestine Liberation Organization's Twitter feed said Trump's Jerusalem decision had damaged peace prospects. Palestinians have said that these tweets prove how the United States can not be a neutral party in any form of peace talks.
Gruden was known as an in your face head coach with both the Raiders and Tampa Bay Buccaneers.
The former Super Bowl-winning coach has been the analyst for ESPN's "Monday Night Football" broadcasts and is scheduled to work Saturday's Titans-Chiefs AFC playoff game in Kansas City.
After going 40-28 in four seasons at Oakland, Gruden replaced the fired Tony Dungy as coach of the Tampa Bay Buccaneers in 2002 as part of a trade deal that saw the Raiders receive two first-round NFL Draft picks, two second-round choices and $8 million. Gruden has already started putting together a staff with Cincinnati defensive co-ordinator Paul Guenther among those expected to join. He coached the Raiders for four seasons from 1998-2001. ESPN reported that Davis was in hot pursuit for Gruden with a persuasive offer that included an ownership stake in the Raiders. Gibbs stepped away following the 1992 season with three Super Bowl titles in his career.