A formal announcement is expected in the next 24 hours.
This will be McKay's second time as Liberty's head coach. The 49-year-old led the Flames from 2007 to 2009 and finished 23-12 in his second season at the school. He then decided to resign that position to join Tony Bennett's staff at Virginia as the associate head coach.
McKay was previously the head coach at, among other places, New Mexico.
He led the Lobos to the NCAA Tournament in 2005.
He was the 2005 MWC Coach of the Year.