Doeren may be looking at $3 million per year to stay with the Wolfpack or $4.5 million per year to head to Knoxville, Tennessee.
A person familiar with the situation says the five-year deal came after Doeren talked with Tennessee officials about their coaching vacancy.
"Dave has made significant strides in developing a complete program at NC State, and this new contract continues our commitment to his leadership", said NC State athletic director Debbie Yow.
Per Football Scoop's report, Tennessee offered Doeren the job on Wednesday night.
Doeren, the News & Observer reported, also has an improved offer from N.C. State that could keep him with the Wolfpack, after weeks of stalled negotiations.
With Jimbo Fisher said to be leaning toward accepting Texas A&M's massive offer, FootballScoop.com is reporting that Sumlin and Fisher could swap places, with Florida State having interest in the former.
It's just another swing and miss by Tennessee athletic director John Currie in the seemingly never-ending coaching search to replace Butch Jones.
The Vols' fan base revolted on Sunday when UT was reportedly set to hire Ohio State defensive coordinator Greg Schiano. After Mike Gundy made a decision to stay at Oklahoma State on Tuesday, Tennessee athletic director John Currie shifted his focus to Purdue's Jeff Brohm. He is preparing the team for its fourth straight bowl appearance. Not only does the Pack have one more game to play, but Doeren still has the prospect of adding to its recruiting class. This season, NC State finished the regular season 8-4.