Southern Miss coach Larry Eustachy agreed to a new three-year contract, a source with direct knowledge of the deal told ESPN.com Wednesday.
Eustachy, who has coached the Golden Eagles the past seven seasons and won 96 games the past five, had one year left on an existing contract. The team has made the postseason just once under Eustachy, a CIT berth in 2009-10.
Southern Miss is expected to challenge teams such as Marshall and UAB at the top of Conference USA, in which Memphis is the overwhelming favorite. The Golden Eagles return Angelo Johnson, who averaged 7.5 points and 4.1 assists last season, and signed a top junior college player in Keith DeWitt, an original Missouri signee.
In addition, a source said a decision was due soon on reinstating Kentucky transfer guard Darnell Dodson by mid-year. Dodson had been booted off the Wildcats team after the 2009-10 season by coach John Calipari, who did not give a reason.
Dodson transferred to Southern Miss and was enrolled this past January, but in late April, Eustachy announced Dodson had been dismissed from the Golden Eagles as well, and also did not give a reason.
According to the Hattiesburg (Miss.) American, Dodson was charged with felony burglary for allegedly stealing items from a fraternity house in April.
Eustachy, 56, had significant success at Idaho, Utah State and Iowa State, but resigned as coach of the Cyclones in 2003 when embarrassing photographs showing him at a college party were published.
Eustachy, who acknowledged publicly that he is a recovering alcoholic, has said that he hasn't had a drink in eight years.
Andy Katz is a senior college basketball writer for ESPN.com.