In what's believed to be a financially strong assistant coaching package, Lue will partner with Euroleague icon David Blatt, the new head coach of the Cavaliers.
Cleveland general manager David Griffin wanted to pursue the hiring of both coaches after Lue was the runner-up in the process, league sources said. Blatt and Lue have been talking frequently, and Clippers coach Doc Rivers has given Lue his blessing to accept the job, league sources said.
In five years as an assistant under Rivers with the Boston Celtics and Los Angeles Clippers, Lue has developed into one of the NBA's most well-regarded young head-coaching prospects, and the Cavaliers franchise believes he'll complement Blatt well.
Rivers now has to replace three assistants on his staff after one season with the Clippers: Lue, Alvin Gentry (Warriors assistant coach) and Kevin Eastman (promoted to the Clippers' front office).
Lue, 37, played 11 seasons in the NBA for seven teams and won two championships with the Los Angeles Lakers in 2000 and 2001.