Mike Carminati responds to this scoop at Baseball Prospectus. From the BP article:

Pete Rose and Major League Baseball have reached an agreement that would allow him to return to baseball in 2004, and includes no admission of wrongdoing by Rose, Baseball Prospectus has learned. According to several sources, Rose signed the agreement after a series of pre-season meetings between Rose, Hall of Fame member Mike Schmidt, and at different times, high-level representatives of Major League Baseball, including Bob DuPuy, Major League Baseball's Chief Operating Officer, and Allan H. "Bud" Selig, Commissioner of Major League Baseball.

The agreement includes removal of Rose from baseball's permanently ineligible list. This would allow Rose to appear on ballots for baseball's Hall of Fame, which bars such banned players from consideration. The agreement allows Rose to be employed by a team in the 2004 season, as long as that position does not involve the day to day operations. That employment restriction would be removed after a year, allowing Rose to return to managing a team as early as the 2005 season if a position is offered to him.

Although Mike is a defender of Rose, he doesn't think he should manage:

Would I hire Pete Rose to run my ballclub? I have been championing his cause for some time. I think he got shafted by baseball and the martyrization of Bart Giamatti. Rose should have been suspended one year, been reinstated and soon gone into the Hall of Fame. That said, if he were to come over to my house for dinner, I would count the silverware after he left. Rose has every right to manage. However, if I were an owner I wouldn't hire him on a bet.