Nussmeier would replace Al Borges, who was let go after three seasons at Michigan earlier Wednesday.
FootballScoop.com first reported the story. CBSSports.com has also confirmed it.
Nussmeier, 43, joined the Crimson Tide in 2012 after spending three seasons as the offensive coordinator at Washington. In his first season, Nussmeier helped the Tide set school records in offensive touchdowns scored, total points, total offense, and passing touchdowns en route to Alabama’s third national championship in four seasons.
Nussmeier interviewed for the head coaching position at Washington last month and was one of two finalists.
“Obviously I feel very, very fortunate to be a part of this program and to be the offensive coordinator at the University of Alabama,” Nussmeier said during his press conference at the Sugar Bowl. “I would like to be a head coach some day in the right situation, having the ties that I have to the University of Washington and understanding what that program is about, that was an opportunity for our family, and coach Saban fully supported it, that it was a very good experience, and obviously very, very excited and happy to be a part of this program.”
Nussmeier, who made $680,000 in 2013, was under contract through 2015.
According to CBSSports.com, Nussmeier would become one of the top-five paid coordinators in college football.
HUBBARD DECLARES: Alabama linebacker Adrian Hubbard will forgo his senior season and enter the NFL Draft, according to CBSSports.com.
Hubbard, a fourth-year junior, was scheduled to meet with Crimson Tide coach Nick Saban on Wednesday to discuss his future. Saban doesn’t encourage underclassmen to leave early if they don’t receive a first-round grade.
Hubbard earned his degree in December. He also considered making the jump following last season.
On the year, Hubbard had 33 tackles, 5.5 tackles for loss and three sacks. In 2012, he had 41 tackles, 11 tackles for loss and seven sacks.
Earlier on Wednesday, Hubbard tweeted: “Grad school or NFL. Big decisions.”
The deadline for players to declare is Jan. 15
Stinson to play in Senior Bowl: Alabama defensive end Ed Stinson has accepted an invitation to play in the 2014 Senior Bowl. The Senior Bowl announced Stinson would be joining on Wednesday.
Stinson (6-foot-4, 292-pounds) was a two-year starter and the only Tide player to start every game in the past two seasons. As a senior, Stinson racked up 42 tackles, two tackles for loss and 1.5 sacks.
Stinson is the fourth Alabama player to accept an invitation joining linebacker C.J. Mosley, wide receiver Kevin Norwood and punter Cody Mandell.
The Senior Bowl will take place on Jan. 25 in Mobile.