AUBURN, Alabama -- Gus Malzahn is stepping down as Auburn's offensive coordinator to return to his home state to become the head coach at Arkansas State.

Malzahn, who made $1.3 million a year at Auburn, is expected to earn around $850,000 a year with his new school, according to people familiar with the hiring. Malzahn will replace Hugh Freeze, who was named Ole Miss' head coach last week.

A press conference is set for 3:30 p.m. Wednesday at Arkansas State to "announce its new head coach," according to the school, which invited fans to attend.

It wasn't immediately known if he'll stay with Auburn as the Tigers prepare for the Chick-fil-A Bowl on New Year's Eve.

Malzahn was a high school coaching legend in Arkansas before getting into the college game as Arkansas' offensive coordinator in 2006. He then put together two dominating offensive seasons at Tulsa in 2007 and 2008 before joining coach Gene Chizik's staff at Auburn for the 2009 season.

The Tigers set a school record for touchdown passes in his first season, then rewrote just about every school record for offense with Cam Newton at quarterback on the way to the national championship last year.

Malzahn won the Frank Broyles Award as the top college assistant coach in the country in 2010.

Auburn struggled offensively this season, however, with a new offensive line and quarterbacks, and stands at 104th in the nation in total offense heading to its Chick-fil-A Bowl game against Virginia on New Year's Eve.

Auburn is already without a defensive coordinator. Ted Roof left for Central Florida last week.

Malzahn was a hot commodity after the 2010 season, but passed on head coaching opportunities at Maryland and Vanderbilt. He signed a new contract that paid $1.3 million annually, making him the highest paid coordinator in the nation.

Chizik hired Malzahn only weeks after taking over as Auburn's new coach in December of 2008.

Prior to joining Chizik's staff, Malzahn spent two seasons at Tulsa. The Golden Hurricane had the top-ranked offense in 2007 and No. 2 overall in 2008.

Malzahn was a well-respected high school coach in Arkansas before entering the college ranks. His five-year tenure at Springdale High culminated in undefeated state championship season in 2005. His prospect-loaded team helped him land the offensive coordinator job at Arkansas under Houston Nutt after the season.

The Razorbacks won 10 games in 2006, Malzahn's first and only season with the team, but he wasn't always on the same page with Nutt and his coaching staff.

A Fort Smith, Ark., native, Malzahn played two years at Arkansas and two years at Henderson State, where he earned his degree.

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