The Blues have been in discussions with Lonergan for some time and The Examiner can exclusively reveal that the 28-year-old is expected to put pen to paper and sign with the club on Thursday while home on a visit to see family and friends.

Lonergan was drafted from the Blues, Tassie Mariners and Tassie Devils as selection 50 in the 2005 AFL draft.

He went on to play 79 games with Essendon over seven years and two with Richmond, earning a reputation as a tough onballer, before retiring from the AFL at the end of the 2013 season.

He has spent the past two years as playing assistant coach with SANFL club Glenelg.

Launceston president Malcolm Atkins said luring Lonergan back was a huge boost for the club.

"Sam has agreed to coach the Launceston Football Club and will come to Tasmania on Thursday to see his family here and to conclude the negotiations and he will have a three-year contract to coach the Launceston Football Club," Atkins said.

"It's fantastic getting him back and it is the best boost we've had for some time to have someone of his standing as a past player and what he has done with football and having spoken with him about what his intentions and plans are for the future - it's a great one for us I believe.

Atkins said current coach Scott Stephens had agreed to take on an assistant coaching role as Lonergan's right-hand man for next season.

"Scott has decided not to play any more but we are going to work on changing his mind and talking him into playing again and fingers crossed we can," he said.

Atkins said the club had held preliminary discussions about recruiting for next season and would talk more with Lonergan about those plans and his own ideas when he relocates to the state to prepare for pre-season training in October.