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Update: The Warriors officially announced that they have reached an agreement in principle with Kerr, and Golden State owner Joe Lacob commented on it to Yahoo Sports: 

NBA.com reports that Steve Kerr has turned down the Knicks' offer to join Phil Jackson in New York and will instead accept the Warriors' job. 

Yahoo Sports reports on the size of the deal, and it's a big one: 

This one is in fact a stunner, as Kerr was thought to be too far in discussions with New York to pull out, especially given his relationship with Jackson. It leaves the Knicks without their primary option who Jackson had spoken with several times over the past few months, dating back to before Jackson joined the Knicks officially. 

Meanwhile, the Warriors land a huge get. A former player who can connect with Steph Curry as a shooter, has a strong relationship with the front office, and the most sought-after candidate in coaching circles. It's a massive recoup by the Warriors who were thought to be scrambling after Stan Van Gundy signed with Detroit. 

Kerr's family lives in San Diego, and it was thought proximity to them would be a priority. The longer the process drug out, you wondered why it was taking so long. 

Steve Kerr is set to join the Warriors as coach reportedly. (USATSI)
Steve Kerr picks Golden State over the Big Apple. (USATSI)