In a press release tonight, the Big Ten confirmed that the new divisional alignment will match what was widely reported by ESPN this afternoon:
1 - OSU, PSU, Indiana, Purdue, Illinois, Wisconsin
2 - Michigan, MSU, NW, Iowa, Minnesota, Nebraska
So it's basically an east/west split with the two Michigan schools switching sides with Wisconsin and Illinois. ESPN also says they will use those division for basketball as well, and play a 16-game schedule with each team playing two games within their division and one game across divisions. There is no word on whether or not OSU-MIchigan will remain at the end of the season.