Roberto Mancini has agreed a two-year deal in principle to become Italy head coach, according to Sky in Italy.
The former Manchester City manager was due to travel to Rome on Monday to meet up with the Italian FA to finalise his contract having left Russian side Zenit St Petersburg on Sunday.
Mancini will take a big pay cut to secure the job, having already given up potential earnings of €13m (£11.5m) by agreeing a termination of his Zenit contract just one year into a three-year deal.
He is set to sign a deal with Italy until the end of Euro 2020 that will see him paid around €2m a year (£1.8m).
Mancini will meet his team on May 22 at Italy’s Coverciano training centre to prepare for his first game in charge against Saudi Arabia in San Gallo on May 28.
Italy then play France in Nice on June 1 and the Netherlands in Turin on June 4.
Four-time world champions Italy failed to qualify for this summer’s World Cup after defeat to Sweden in a two-leg play-off.
Mancini’s appointment is likely to see the return of Mario Balotelli to the national team. He was omitted from the selection against England and Argentina earlier this year.