Texas is expected to announce on Thursday the new post in Texas' Division of Diversity and Community Engagement, sources told HornsDigest.
The 2005 national championship quarterback for the Longhorns will be working with first-generation college students, the sources said.
Young, who received his bachelor's degree in applied learning and development from Texas in 2013, has said he was the first member of his family to receive his college degree.
The sources said Young's role at the university could also include fund-raising and other responsibilities, but that his primary role will be working in the Division of Diversity and Community Engagement.
The job pays "six figures," one source said.
Young became a UT legend after helping lead Texas to a dramatic 41-38 victory over USC for the BCS national title in which he ran for 200 yards and 3 touchdowns while completing 30 of 40 passes for 267 yards.
He was the No. 3 overall pick in the 2006 NFL Draft by the Tennessee Titans, where he went 31-19 as a starter but was released after five seasons. Young spent one final season with the Philadelphia Eagles in 2011 before his NFL career essentially came to an end.
By the end of his NFL career, Young earned a reputation as a hard-to-coach, lavish spender who burned through more than $20 million, according to reports.
UT sources say Young's life changed when he earned his degree at Texas in 2013 and that his new position is "a perfect fit for him" based on his education and life experiences.