The AP reports that Casey, who was sacked last month after the Toronto Raptors were swept by Cleveland in the second round of the post-season, has reached an agreement on a five-year deal to become the Pistons' next head coach.
The Raptors were the first seed in the Eastern Conference this year, finishing with a record of 59-23. But they were swept in the second by Cleveland and LeBron James, the third year in a row they have been eliminated by the Cavaliers.
Detroit has been looking for a coach for a month since firing Stan Van Gundy, who was also its president of basketball operations.
The Pistons recently hired the former Nets general manager Ed Stefanski to lead their search for new front-office executives.
The Pistons also considered MI basketball coach John Beilein for the position.
"I am excited and honored to join the Detroit Pistons, a franchise with a championship history and a roster that is ready to win now", Casey said in a statement.
Despite missing the playoffs, Detroit traded for Blake Griffin and have a strong tandem of him and centre Andre Drummond.
Casey, who is from Morganfield, Kentucky, played for the Wildcats and helped them win the 1978 NCAA title and began his coaching career the next year as a graduate assistant under Joe B. Hall.
"I'm confident that this team has the pieces in place to compete at a very high level", Mr. Casey added.
He coached the Minnesota Timberwolves for a little more than one season, going 53-69.
Casey is getting his third shot to lead an National Basketball Association team. He has five years of coaching experience in Japan and has spent time around the game in Europe.
Casey coached seven years in Toronto, making the playoffs the past five.