Chuck Daly has signed a three-year, $1.3 million contract to remain as coach of the Detroit Pistons club he led to its first NBA championship series last season, it was reported today.

General Manager Jack McCloskey on Thursday announced a multi-year agreement had been reached with Daly but didn't disclose the terms.However, The Detroit News and WDIV-TV said the deal was for three years and the News said today the 57-year-old coach would receive $1.3 million.

"The contract was satisfactory to me, and it puts me with the top people in the league," Daly said. "No question I wanted to stay here. I've grown up with this team, and I really like the city."

The contract will be signed when McCloskey returns from Europe July 10.

"I don't think there's any question I'll finish my coaching career here in Detroit," Daly said. "And that's what I want."

Daly took the club to the seventh game of the NBA championship series before bowing to the Los Angeles Lakers. The Pistons won the Central Division with a 54-28 record, best in franchise history, and beat Washington, Chicago and Boston to advance to the NBA finals.

Daly is the most successful coach in the team's history with a 265-178 record and has never finished with a losing mark in five seasons with the Pistons. Before Daly's arrival on May 17, 1983, the Pistons had never posted back-to-back winning seasons.

"We've had good success here over the first five years," he said. "I would really like to win an NBA title. I think we're close. We need to continue to improve our roster in order to get there, but we've got a shot."

Daly began his coaching career in 1963 at Duke University, serving as freshman coach and later as an assistant varsity coach.

He spent two years as coach at Boston College, compiling a 26-26 record, before moving to the University of Pennsylvania in 1971.

In six seasons at Penn, Daly's teams won four Ivy League titles while compiling a 125-38 record. In his first season, he led Penn to a 25-3 record and the No. 3 ranking nationally.

He left Penn in 1977 to become an assistant coach with the Philadelphia 76ers, and later became interim coach of the Cleveland Cavaliers in 1981-82 before signing with the Pistons.

Also Thursday, the Pistons signed second-round draft pick Michael Williams, a 6-foot-2 guard from Baylor who was the 48th player taken. Terms weren't announced.