The move, first reported by 610 AM in Kansas City, has not yet been announced.
Haley will replace Bruce Arians, now with the Indianapolis Colts.
He spent 10 seasons as an assistant before being hired by Kansas City. He was offensive coordinator for Arizona in 2007-08, helping lead the Cardinals to their only Super Bowl appearance.
Phone messages left for Haley by the Associated Press were not immediately returned.
The Steelers went 12-4 this season but lost the AFC North title to Baltimore on a tiebreaker.
The Chiefs were 5-8 when Haley was dismissed. His last game was a tough one. Kansas City lost, 37-10, to the New York Jets at the Meadowlands, and it was their fifth loss in six games. Kansas City committed 11 penalties for 128 yards in the performance, including a 15-yarder on Haley for unsportsmanlike conduct that may have sealed his fate.
The next day, he was fired.
“Timing in these situations is always difficult. There never seems to be a right time,” Chiefs chairman and CEO Clark Hunt said at the time. “We just felt the inconsistent play the team has experienced throughout the season, including yesterday’s game, made today the right day to do it.”
After three lopsided losses to start the season, Kansas City rattled off four straight wins and briefly pulled into a tie atop the AFC West. But that was followed by a home loss to previously winless Miami, the start of a disastrous six weeks in which the losses mounted.
“We’ve had one of those years where we’ve had injuries, and injuries to key players, but that’s typical in the National Football League,” Hunt said then. “As a team, you have to find a way to overcome that, and we just weren’t able to do that this year. Our play was up and down the entire season and at times it was up and down during a given game, and I think those contributed to our decision.”
Without a bye, the Steelers had to play a road game at Denver to open the postseason. Quarterback Ben Roethlisberger threw for 289 yards and a touchdown, but the Steelers fell to the Broncos, 29-23, in overtime.
Haley is the son of Dick Haley, formerly the director of player personnel for the Steelers from 1971-1990.