League sources told ESPN that Billups agreed to a five-year contract with the Trail Blazers that includes a team option on the last season. Portland later confirmed the agreement, but the franchise didn't disclose terms of the contract.
The 44-year-old Billups, who becomes the 15th head coach in team history, will be introduced at a Tuesday news conference in Portland.
"Chauncey is a proven leader with an elite basketball IQ that has won everywhere he has been," Trail Blazers president of basketball operations Neil Olshey said in a statement Sunday night. "He is prepared for the challenge of developing the championship habits and strategic approach we need to achieve the expectations and goals for our franchise."
Billups replaces former Blazers head coach Terry Stotts, who parted ways with the organization earlier this month after nine seasons.
"I'm very excited and humbled to be the next coach of the Trail Blazers," Billups said in a news release. "Portland is a special place and a unique franchise. As a player I always loved playing here because the passion and knowledge of the fans brought out the very best in me as a competitor.
"Now I'm looking forward to being on the other side of that energy and engaging with the Portland community on a whole other level."
Billups has spent the 2020-21 season as an assistant coach for the Clippers. As a member of Tyronn Lue's staff, Billups helped guide Los Angeles to a 47-25 record in the regular season and a playoff run that currently has the team in the Western Conference Finals.
Prior to joining the Clippers' coaching staff, Billups played 17 seasons in the NBA for the Boston Celtics, Toronto Raptors, Denver Nuggets, Minnesota Timberwolves, Detroit Pistons, New York Knicks and Clippers. The five-time All-Star was named NBA Finals MVP after leading the Pistons to a championship in 2004.