After team chairman Jerry Reinsdorf vetoed the hiring of his good friend and former Bulls coach Doug Collins, the search centered on Del Negro and former Minnesota head coach Dwane Casey.
Both interviewed last week, in addition to Sacramento assistant Chuck Person.
Del Negro, 41, is considered a risk with no head coaching experience. He was the assistant general manager under Steve Kerr in Phoenix.
He spent 11 years as a player in the NBA, playing with the Kings, Spurs, Bucks, Warriors and Suns.
A combo guard at NC State, Del Negro played four seasons for the Wolfpack, averaging 9.1 points per game and 2.6 assists.
Mainly a role player his first two years in Raleigh, Del Negro averaged 10.4 points as a junior and was an All-ACC selection in 1987-88 when he averaged 15.9 points and 4.9 rebounds per game during his senior season.