3:26pm: The Hawks have officially announced the hiring of Budenholzer in a press release.
"We are thrilled to have Mike as the next coach of the Atlanta Hawks. He has an incredible basketball acumen and has a keen awareness of the league and what it takes to be successful," Ferry said in a statement. "His experience and four championships over the last 17 years provide a tremendous foundation for his leadership of our team."
3:13pm: The Hawks have reached an agreement to hire Spurs assistant Mike Budenholzer as their new head coach, reports Chris Vivlamore of the Atlanta Journal Constitution (via Twitter). Adrian Wojnarowski of Yahoo! Sports had previously reported that the two sides were engaged in "serious talks" about the position.
With the move, Atlanta becomes the fourth team to hire a new head coach this season, along with the Cavaliers, Suns, and Bobcats. The hiring of Budenholzer also assures that Larry Drew won't return as the team's coach next season — Drew had remained under contract, though he has been exploring other options and moving forward as if he won't receive an extension.
Budenholzer has been a member of the Spurs' organization since the 1994/95 season, acting as an assistant coach since '96/97 and crossing paths with Hawks GM Danny Ferry during Ferry's two separate stints in the Spurs' front office. Budenholzer has been Gregg Popovich's top assistant in San Antonio since the 2007/08 season.
Before the Hawks reached an agreement with Budenholzer, Stan Van Gundy was among the candidates linked to the team's coaching opening, but Van Gundy eventually decided not to coach in 2013/14. A pair of coaches who spent last season with CSKA Moscow, Ettore Messina and Quin Snyder, were also rumored to be considered by Atlanta.