Sources: Bills set to hire Rex Ryan

— -- The Buffalo Bills are putting the finishing touches on a five-year deal that will make Rex Ryan their next head coach, sources told ESPN NFL Insider Adam Schefter.

The hiring of Ryan, who will earn a salary of $5.5 million per year, would complete an extensive coaching search for the Bills, who have interviewed 12 candidates since Doug Marrone opted out of his contract on Dec. 31.

The Bills conducted a second interview with Ryan on Saturday night, sources told ESPN. He also interviewed for the Falcons' coaching vacancy. But when the Falcons dragged their feet on hiring Ryan, which they strongly considered doing at one point last week, he agreed to Buffalo's wishes for a second interview and the new deal, sources told ESPN.

Ryan and the Bills are expected to hire  49ers offensive coordinator Greg Roman to the same position in Buffalo, sources told ESPN. Ryan and Roman previously worked together as assistant coaches with the  Ravens.

The Bills also have said they would like to keep Jim Schwartz as defensive coordinator and pair him with the best head coach possible. Ryan already has spoken to Schwartz about staying as Buffalo's defensive coordinator, a league source told ESPN. But Schwartz runs a 4-3 defensive scheme with a wide-9 front -- used consistently this year only by the Bills and  Lions, according to a source -- while Ryan prefers a hybrid 3-4 scheme.

Ryan spent the last six seasons with the Jets, going 46-50 and helping New York reach the AFC Championship Game in each of his first two years.

But Ryan and general manager John Idzik were fired on Dec. 29 after the Jets went 4-12 and missed the playoffs for the fourth straight season. Ryan is not expected to bring many, if any, of his former Jets offensive assistant coaches to Buffalo, according to a source.

The defensive-minded Ryan will inherit a Bills defense that ranked fourth in the NFL and had a league-leading 54 sacks this past season.

But he also will inherit a quarterback situation that appears just as unsettled as it was with the Jets, where Geno Smith's inconsistent play hurt the team's offense. EJ Manuel, who like Smith was drafted in 2013, appears in line to start for Buffalo.

After struggling over the first four games, Manuel was benched in favor of veteran  Kyle Orton, who retired after the season.

Ryan will become the first coach to change teams within the same division since Bill Parcells joined the Jets in 1997, according to ESPN Stats & Information. Parcells coached the New England Patriots the previous season.

The Bills went 9-7 this past season -- finishing with a winning record for the first time since 2004 -- but haven't made the postseason in 15 years, the longest active drought in the NFL.

ESPN NFL Insider Adam Caplan contributed to this report.