UPDATE 1:04 am:  A team source confirmed the report, Josh McDaniels will be the new head coach of the Denver Broncos.  More news will be available tomorrow (or today, technically)

According to a report from ESPN, the Denver Broncos have decided to hire New England Patriots offensive coordinator Josh McDaniels.  The report confirms recent speculation that McDaniels was the front runner for the position; and was believed to be one of two finalists along with Minnesota Vikings defensive coordinator Leslie Frazier.

The speculation that McDaniels might be the Broncos new head coach rose to a new level when reports surfaced that the Broncos met with the 32-year old assistant in New England on Thursday. 

McDaniels played college football at John Carroll University in Ohio and was an early candidate of the Cleveland Browns, interviewing with Brown owner Randy Lerner. Cleveland had an opening after letting former Patriots assistant Romeo Crennel go after a 4-12 season.

McDaniels was an assistant with Patriots head coach Bill Belichick’s close friend Nick Saban at Michigan State before he joined the Patriots staff in 2001.  In eight seasons McDaniels moved from the Personnel department (2001) to defensive assistant (2002-03) to quarterbacks coach (2004) and then offensive coordinator (2006).

According to the Denver Post, Patriots special assistant coach Dom Capers will join McDaniels in Denver.  Capers was a head coach of the Carolina Panthers (1995-98) and Houston Texans (2001-05). He joined the Patriots in 2008 after two seasons in Miami.