North Carolina has agreed to a five-year deal with Brown that will pay him $3.5 million annually in his second stint with the Tar Heels.
The school released terms of the deal shortly before its news conference with Brown, athletic director Bubba Cunningham and chancellor Carol Folt.
The deal includes a base salary of $750,000 and supplemental compensation of $2 million a year. There's an additional $200,000 per year tied to apparel maker Nike and $500,000 annually with Learfield for multimedia obligations.
Brown, 67, will also receive $50,000 annually for expenses.
"Mack Brown has a proven record of building great teams, and he doesn't just develop football players - he also develops people of strong character," said Director of Athletics Bubba Cunningham. "He knows how to win championships, and he expects his student-athletes to win in the classroom and community, as well. We are excited about his plans for our football program, and I am thrilled to welcome Coach Brown and wife Sally back to Chapel Hill."
News of Brown's return came just 24 hours after the university fired head coach Larry Fedora after the loss to State in overtime 34-28.
Brown said he's thrilled to once again coach the Tar Heels.
"Sally and I love North Carolina, we love this University and we are thrilled to be back,'' Brown said. "The best part of coaching is the players - building relationships, building confidence, and ultimately seeing them build success on and off the field. We can't to wait to meet our current student-athletes and reconnect with friends, alumni and fellow Tar Heel coaches. We thank UNC's Board of Trustees, Chancellor Folt and Bubba Cunningham for supporting our return to the Carolina family."
"This is a big day for Carolina," said Chancellor Carol L. Folt. "We are welcoming back a coach who built a winning football program during his first tenure in Chapel Hill - one that reflected the values, culture, and commitment to the excellence we aspire to in everything we do at this University. While chancellor, I have gotten to know Mack and have always admired his commitment to the success of student-athletes and passion for the college game. I'm looking forward to welcoming Mack and Sally back home to Carolina."
Brown was first hired as UNC's football coach in 1988. He had winning seasons in eight consecutive years, culminating in back-to-back top 10 rankings in the 1996 and 1997 seasons.
Brown then left UNC to be the head coach at Texas. He coached UT for 16 seasons, amassing a 158-48 record and winning a national title in 2005.
Since retiring from football in 2013, Brown has been an analyst for ESPN.
Brown will be inducted into the National Football Foundation's College Hall of Fame in December.