Former New Orleans Saints coach Sean Payton is about to become the head coach of the Denver Broncos.

According to ESPN, the two teams agreed to compensation on Tuesday afternoon that would clear the path for Payton to be hired by the Broncos. Denver would trade a first-round pick in 2023 -- the 29th overall -- and a second-round pick in 2024 for Payton and a third-round pick.

Payton, 59, is the biggest name available in the coaching market. He is still under contract with New Orleans through the 2024 season after stepping aside as the Saints' coach in January 2022 after 15 seasons.

Payton said last week that the price for an NFL team to hire him in this cycle would likely be a mid- to late-first-round draft pick.

In addition to the Broncos, Payton also has interviewed with the Houston Texans, Arizona Cardinals and Carolina Panthers.

The 2023 first-round draft pick was received in the trade deadline deal with the Miami Dolphins for outside linebacker Bradley Chubb.

Payton took last season off after coaching New Orleans to a 152-89 record in 15 seasons. He guided the Saints to the 2009 season Super Bowl title.

The Super Bowl-winning season is the lone time Payton has won multiple games in the postseason. He has a 9-8 mark in nine appearances.

The Saints won 10 or more games nine times under Payton. They went 9-8 in his final season in 2021.

The Broncos have missed the playoffs in seven straight seasons and have sustained six consecutive losing campaigns.

Despite acquiring quarterback Russell Wilson from the Seattle Seahawks prior to last season, Denver was just 5-12 and first-year coach Nathaniel Hackett was fired with two games remaining in the regular season.