Phil Jackson signed on to become president of the New York Knicks after a lunch meeting with team officials Friday, sources have told ESPN.

Todd Musburger, Jackson’s Chicago-based agent, was in Los Angeles to finalize the contract with Jackson and Knicks officials, according to sources. Jackson’s deal is expected to pay him $12 million a year, sources said.

The Knicks released a statement earlier Friday saying a “major announcement” would be made Tuesday at 11 a.m. ET at Madison Square Garden.

Jackson, who has won a record 11 NBA championships as coach of the Lakers and Bulls and two as a Knicks player, likely will spend significant time in New York but also retain his time in Los Angeles, sources said.

Jackson will take over the running of the Knicks’ basketball operations department from president and general manager Steve Mills. A source said earlier this week that Mills will remain an integral part of the organization.