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.

The Carolina Panthers have received permission to interview Sean Payton for their head coaching position.

The New Orleans Saints are expected to receive draft pick compensation from any team that agrees to hire Payton and could demand extra from the Panthers because they are a division rival.

Payton is a candidate for a number of other vacancies. 

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.