 Bruce has established Wigan as a Premier League club
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Sunderland look set to name Steve Bruce as their new manager on Wednesday, BBC Sport understands.
Bruce, 48, was given permission by Wigan chairman Dave Whelan to speak to the Black Cats about their vacant managerial post last week.
Whelan wanted the £3m back he paid Birmingham to release Bruce from his St Andrew's contract in 2007.
With the compensation package agreed it is now just a matter of Sunderland agreeing personal terms with Bruce.
Officials from the north east club flew to Portugal - where Bruce was on holiday - to thrash out personal terms.
Ricky Sbragia stepped down as Sunderland boss at the end of the season, having kept the team in the Premier League.
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Former Celtic manager Gordon Strachan was linked with the vacancy before attention moved to Newcastle-born Bruce.
The former Manchester United defender began his managerial career at Sheffield United in 1998, and since then has had spells at Huddersfield, Crystal Palace, Birmingham and Wigan - twice.
His second spell at the Latics began in November 2007 after Whelan paid Birmingham £3m to secure his services, and this season he guided the Latics to 11th in the Premier League, while Sunderland finished 16th.
If Bruce does take the job, it will be the first significant change since American businessman Ellis Short took total control of the club.
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