There are still some details to work out, but come 2014, the BCS is dead.
Instead of simply matching the No. 1 and No. 2 teams in the country in a championship game after the regular season, the way the Bowl Championship Series has done since 1998, the new format will create a pair of national semifinals.
The teams will be selected by a committee, similar to the way the NCAA basketball tournament field is set.
The semifinals will be held at current bowl sites, and the national championship game will be awarded to the highest bidder.
The 12-year deal is through the 2025 season.
ESPN and The Associated Press contributed to this report.