Nate McMillan signed a three-year contract to become head coach of the Indiana Pacers, league sources told The Vertical.

Nate McMillan (AP Photo) More

There are no options in the deal, sources said.

Indiana introduced McMillan at a news conference on Monday in Indianapolis.

For the past three years, McMillan had been the top assistant to Frank Vogel. This will be McMillan’s third head-coaching job in the NBA, after stops with Portland and Seattle.

Indiana president Larry Bird declined to renew Vogel’s contract despite significant success on the job in five seasons as coach.

McMillan interviewed for the job with Pacers officials late in the week, was offered the job and the two sides ironed out contract terms on Saturday, sources said.

Across seven seasons as the Portland Trail Blazers' coach, McMillan had a .497 winning percentage and advanced to the first round of the Western Conference playoffs in 2009, '10 and '11. McMillan was fired in 2012.

McMillan spent five seasons as the Seattle Sonics' coach, where he reached the playoffs twice. In his final year there, McMillan led the Sonics to 52 regular-season victories and the conference semifinals in 2004-05.

This season, Indiana won 45 games, earned the seventh seed and pushed No. 2 seed Toronto to seven games in the first round of the Eastern Conference playoffs.