He also considered Maryland and Rutgers as potential transfer destinations.
Transfer rules dictate he'll sit out the 2005 season in Chapel Hill and be eligible in 2006.
"It's a prestigious school," Dailey said of North Carolina. "I'm excited about it."
"Coach Bunting was very up front with Joe, and obviously Marvin Sanders was a connection," said Rich Hansen, Dailey's coach at St. Peter's Prep in New Jersey. "Plus, Joe's timeline with what he wants to get done at quarterback matched up well with them."