"Josh McDaniels and the New England Patriots have agreed to a deal that will make McDaniels the team's offensive coordinator in 2012, according to a league source.

The Patriots announced Sunday night that McDaniels has been hired as an offensive assistant coach for the rest of this season.

McDaniels will replace Bill O'Brien, the new head coach at Penn State. O'Brien will work as the Patriots' offensive coordinator for the remainder of this season.

McDaniels is returning to the team he left in 2009, when he took the Broncos' head coaching job.

The Patriots will face the Broncos in the divisional playoffs Saturday night at Foxborough, Mass."