The Broncos were expected to offer Fangio a four-year deal, plus a team option for a fifth year, ESPN's NFL insider Adam Schefter tweeted Wednesday. NFL Network's Ian Rapoport also reported the news.
Fangio has put together one of the NFL's best defenses since he was hired in 2015, and as a result he will finally get his chance to be a head coach.
The Broncos were one of at least two teams that requested permission from the Bears to interview Fangio for their vacant coaching positions.
The Broncos fired head coach Vance Joseph and sought Fangio for a defensive shot in the arm as they try to keep up with divisional rivals Kansas City and Los Angeles.
The Miami Dolphins also looked into hiring Fangio after they fired former Bears offensive coordinator Adam Gase.
The Bears will now begin their search for a new defensive coordinator. The team could promote defensive backs coach Ed Donatell, but would need to sign him to a new contract.