The Football Association board has approved Fabio Capello's appointment as the new England manager.
The Italian is poised to sign a four-and-a-half year deal that will be worth £6.5million a year when the finer points of the contract are finalised.
The FA's director of communications, Adrian Bevington, said: "Discussions have continued throughout the day between The FA and Fabio Capello's advisors.
"The FA Board has also today approved Capello's appointment as England manager subject to the successful conclusion of these contract negotiations. These will continue tomorrow.
"I want to stress that there are no problems and that we are going through the necessary process to reach a successful conclusion.
"Understandably, at this time, we are unable to confirm any media activity that may take place. We will provide an update tomorrow."
The 61-year-old has enjoyed an illustrious coaching career at club level, winning nine league titles during spells in charge of AC Milan, Real Madrid, AS Roma and Juventus.
Capello had previously played for the same three Italian clubs, as well as winning 32 international caps with the Azzurri.
Earlier, Capello has said that he felt that England's players had something of a mental block when turning out for the national team.
He told The Sun: "It's clear there is a mental block, otherwise how can you explain their elimination from Euro 2008?
"We managers ask ourselves how can England, with the players they have, not qualify for the 2008 European Championships?
"The English team, much like the Spanish team, wins very little despite having some very good players.
"I've watched some of the games of the English. In the match against Russia in Moscow they played defensively.
"Against Croatia at Wembley they were all playing up front. They lost 2-3 when a draw at home would have been enough to qualify."