The Denver Broncos and New Orleans Saints have reached an agreement on compensation for Sean Payton, according to sources.

The Saints will receive the Broncos' 2023 first-round pick (No. 30 overall) and their 2024 second-round pick for Payton and the Saints' 2024 third-round selection, sources said.

The deal clears the way for Payton to become the next coach of the Broncos.

It still appears as though Jim Harbaugh will return to the University of Michigan.

Harbaugh spent some time last week with Greg Penner, owner and CEO of the Denver Broncos, about their head coaching vacancy, but no deal was made, according to a report.

Demeco Ryans has emerged as "a top candidate" to become the next head coach of the Denver Broncos.

Ryans and David Shaw were considered the two top candidates earlier this week.

The Broncos cannot formally hire Ryans until after the San Francisco 49ers' season ends.

Demeco Ryans had four head coaching interviews scheduled for Saturday, but canceled two of them to spend the remainder of the day preparing for the San Francisco 49ers to play the Dallas Cowboys on Sunday.

Ryans interviewed with the Denver Broncos and Houston Texans, then canceled scheduled interviews with the Arizona Cardinals and Indianapolis Colts.

Ryans is considered one of the top candidates on the market due to his work as defensive coordinator of the 49ers. 

Russell Wilson has reached out to Sean Payton to make it known that he'd like him to coach the Denver Broncos, according to a report by Colin Cowherd.

"Russell Wilson has contacted Sean -- legally, by the way, through channels," Cowherd said. "He wants Sean Payton. He needs fixing. He knows he needs fixing."

Payton has also been linked to the Arizona Cardinals, Carolina Panthers and Houston Texans.

The Indianapolis Colts have submitted a request to interview Dan Quinn for their head coaching vacancy.

Quinn is already scheduled to be interviewed with the Denver Broncos on Friday.

Quinn was previously a head coach with the Atlanta Falcons and has most recently been defensive coordinator of the Dallas Cowboys. 

Jim Harbaugh announced he will return to Michigan as head coach for the 2023 season after discussing NFL jobs with various teams for the second straight year.

"I love the relationships that I have at Michigan -- coaches, staff, families, administration, president Santa Ono and especially the players and their families," Harbaugh said in a statement. "My heart is at the University of Michigan. I once heard a wise man say, 'Don't try to out-happy, happy.' Go Blue!"

Harbaugh interviewed with the Denver Broncos and also had a conversation with Carolina Panthers owner David Tepper.

Harbaugh called the Broncos on Monday to inform them he was remaining at Michigan.

David Shaw interviewed for the head coaching position with the Denver Broncos on Wednesday.

Shaw stepped down as head coach of Stanford this past season. Shaw had previously received interest from NFL teams, but had preferred to remain at Stanford. 

Shaw spent nine seasons in the NFL from 1997 until 2005. 

The Denver Broncos have requested permission to interview DeMeco Ryans and Raheem Morris.

Ryans, defensive coordinator of the San Francisco 49ers, is expected to be one of the most sought after head coaching candidates in this cycle.

Morris is defensive coordinator of the Los Angeles Rams and was previously head coach of the Tampa Bay Buccaneers. 

The Denver Broncos have received permission to interview Sean Payton for their head coaching vacancy.

Payton stepped away from the New Orleans Saints after the 2021 season.

The Broncos fired Nathaniel Hackett after a 4-11 record in his 15-game tenure.

Payton and the Saints agreed to a five-year extension in 2019 that would have run through the 2024 season. 

The NFL has informed the Broncos the team cannot interview Payton in person until Jan. 17 at the earliest.

The Broncos have also reached out to Jim Harbaugh to gauge his interest in the job.