The team announced Wednesday that Maddon agreed to terms with the club. League sources told ESPN that he is expected to receive a three-year contract worth between $12 million and $15 million. Maddon will be formally introduced by the club next week.
"I could not be more excited to come back home and manage this great organization," Maddon said in a statement. "I'd like to thank Arte Moreno, Billy Eppler and John Carpino for giving me the opportunity to add another chapter to my Angels career.
"I was lucky enough to be a part of the first Angels team to win a World Series title and I look forward to the opportunity to bring Angel fans their second championship."
Maddon, 65, spent the first three decades of his playing and coaching career with the Angels. He left the organization and managed the Tampa Bay Rays (2006-14) before leading the Cubs to their first World Series title in 108 years during the 2016 season.
Maddon was the Cubs' manager for five seasons but parted ways with the club after the conclusion of the regular season. The three-time Manager of the Year was linked to the Angels position ever since the team fired Brad Ausmus on Sept. 30.
This season, the Angels finished 72-90 under Ausmus in his lone season as manager. The organization has reached the postseason only once in the last 10 seasons.