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BBC Sport understands that Alan Shearer will be appointed as Newcastle manager until the end of the season.
Magpies legend Shearer, 38, has been continually linked with a return to the club but has been critical of the current structure at the club.
Chris Hughton is currently in caretaker charge of the club as interim manager Joe Kinnear recovers from a triple heart bypass.
The Magpies are currently 18th in the table with 29 points from 30 matches.
Shearer scored 206 goals in 404 appearances during a 10-year playing stint to earn legendary status on Tyneside after joining for a record £15m fee from Blackburn.
The former England striker, who retired from playing in 2006, has made no secret of his desire to become a manager one day.
However, Shearer, now a pundit on BBC TV's Match of the Day, is believed to be put off from returning to St James' Park by the regime of owner Mike Ashley - which he described as "strange" in March.
In September 2008 he rejected an offer to join the coaching staff at St James' Park.
Both on and off the pitch, Newcastle have lurched from one crisis to the next this season following the departure of Kevin Keegan early in the campaign.
Following a fans' backlash over Keegan's exit, Ashley raised the possibility of selling the club, before deciding to stay on.
Key striker Michael Owen has been involved in just four games this year due to an ankle injury, while Charles N'Zogbia moved to Wigan in the January transfer window after a high-profile bust-up out with Kinnear.
Hughton also denied Ashley had come to dressing room after the game to speak to the players.
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