An official announcement is expected soon.
A source said Gregory told his team at a meeting early Monday.
Gregory spent eight seasons at Dayton and took the Flyers to two NCAA tournaments, but he only finished higher than seventh in the Atlantic 10 once in the past six seasons. The former Michigan State assistant is replacing Paul Hewitt at Georgia Tech. The ACC school fired Hewitt earlier this month after five NCAA tournaments in 11 seasons.
This development leaves N.C. State as the only open job in the ACC.