Fabio Capello could be installed as the new England manager by the end of the week, BBC Sport understands.
The Italian is expected to fly to London for formal discussions – and a deal could be wrapped up within days.
The ex-Real Madrid, Juventus, AC Milan and Roma coach has said he is keen to succeed Steve McClaren, with Marcello Lippi thought to be his main rival.
“There’s been contact with Capello and there will be more,” said Radio 5 Live football correspondent Jonathan Legard.
Lippi, who steered Italy to success in the 2006 tournament, and fellow contenders Jurgen Klinsmann, who led Germany to the semi-finals, and Aston Villa boss Martin O’Neill look to have fallen down the pecking order.
Former Chelsea boss Jose Mourinho had been the favourite to succeed McClaren, but pulled out of the running after holding talks with Barwick and Sir Trevor Brooking, the FA’s director of football.
Lippi would be my personal choice, but Capello hardly comes in a poor second
“The discreet soundings (with Capello) were encouraging and now he is set for full-blown discussions,” added Legard.
“He admitted his interest from the outset, describing it as a ‘beautiful challenge’, and I would say Fabio Capello looks odds-on to be the next coach of England.”
Contact between the FA and Capello, 61, has been so far been between intermediaries, Legard added.
“I’m told there are still alternative candidates whom the FA knows to be keen on the job,” Legard said.
“But the expectation is that England will secure this Italian ‘winning machine’, as one source put it.”
Capello has won nine league titles in 16 years as coach, picking up silverware with all four clubs he has coached.
The only problem he could have, I don’t know how good his English is. But the technical job, you don’t have to worry about him
He won the Champions League with Milan in 1994 and was also an accomplished player, winning 32 caps as a midfielder for the national team.
Arsenal boss Arsene Wenger said England could not choose a better-qualified coach, but expressed concern about the Italian’s grasp of English – which is said to be minimal.
“Capello is a strong character,” said Wenger.
“He has a clear idea of what he wants. I believe as well he’s a strong winner. The guy is convinced of the methods he uses. The quality of the candidate is outstanding.
“The only problem he could have, I don’t know how good his English is. A big part of the job is to deal with the media.
“But the technical job, you don’t have to worry about him.”
Manchester United boss Sir Alex Ferguson added: “To manage a national team you need to be a certain age with plenty of experience and with a presence and a CV that is indisputable and Capello has all of that.”
Giancarlo Galavotti, London correspondent for Gazzetta dello Sport, believes that a deal between Capello and the FA could be struck by the end of the week.
“Of course they have not yet sat together to discuss all the details but it appears that barring anything absolutely dramatic I would say that possibly by the end of the week everything will be sealed, ” he said.
He added: “If England go for a foreign coach there is hardly anyone better than him.
I would say that his credentials are incredible. If the class of Fabio Capello fails then it is very worrying for the England national team
“I would say he is more of a Sir Alex Ferguson sort of character. He is very much his own man, very much wants to win and if winning means to set aside players or even staff which have been with him for many years he will do that because he has got only one aim and that is to win.
“I would say that his credentials are incredible. If the class of Fabio Capello fails then it is very worrying for the England national team.”
Capello was sacked by Madrid in June despite guiding them to La Liga crown and since then, he has been working as a commentator for Italian television company RAI.
According to BBC sources, RAI have already begun the search for his replacement, seemingly convinced he is about to be given the England job.
Former Chelsea star Gianfranco Zola has voiced his support for Capello, saying he “possesses the ideal pedigree to create a new era of success for England”.
“Even when Jose Mourinho was in the running I believed that Capello had even more charisma, talent and experience for a challenging job like this one.”
Source: Capello poised for England talks
