Lee opted to take a gig with the Miami Dolphins in the NFL to try to get vested in the NFL pension since he had done a stint with the Dallas Cowboys earlier in his career.
The Miami tenure has now come to an end and Lee has come full circle, reunited with Nutt and, ironically, back to Ole Miss, where he coached with Steve Sloan from 1978-82 as the quarterbacks coach.
"David and I had a great working relationship at Arkansas and I am thrilled we will be back together at Ole Miss," said Nutt, who is at the coaches convention in Dallas, TX, for a couple of days.
"We had a lot of success on offense at Arkansas and we intend to have the same success here."
In 2007, his last with Nutt and the Razorbacks, Lee presided over an offense that averaged 38.8 points and 457.4 yards per game.
"David has a great offensive mind and has produced some outstanding offenses and quarterbacks," Nutt continued.
"He's got nearly 30 years of coaching experience and was instrumental in introducing the Wildcat formation back into college football and into the NFL.
"He was a quarterback for Vanderbilt and has built a career on coaching guys like Tony Romo, Chad Pennington, Matt Jones and Chad Henne. He will do a great job with our QBs and with our offense."
Lee will replace David Rader, who has been at Ole Miss for one year.
"Coach Rader did a great job in a tough situation," said Nutt. "I really appreciate what he did with Jeremiah Masoli and trying to adapt on the run in midstream.
"David is a wonderful human being and a quality coach, but this past year calls for some change and when I got the chance to get David Lee back, I had to take it for the good of the program. I have nothing but admiration and good thoughts about Coach Rader. He did the best he could under some difficult conditions. I wish him nothing but the best."
Nutt is interviewing other coaches while in Dallas and has been working on a list of potential Rebel coaches for other positions as well.
"I am looking at a lot of options on how to improve our staff. This has been in the works for several weeks, but I still have some hard decisions and choices to make," he noted. "David Lee is a great start, however, in righting our ship.
"The familiarity we have with each other, the trust we have, the way we know how each other thinks - I could not be happier."