Former Blackburn defender Henning Berg is set to sign a three-year deal to become the club's new manager.
The imminent arrival of the 43-year-old, who has six years of managerial experience in his native Norway, ends the search for Steve Kean's successor.
Berg, who is expected to be unveiled on Thursday, will take charge with Blackburn fifth in the Championship.
He played almost 300 games in two spells with Rovers and won the Premier League title with the club in 1995.
Blackburn have waited more than a month to appoint a replacement for Kean, who resigned on 28 September after 21 months in charge.
The Championship club asked to speak with former Rovers players Tim Sherwood - currently the technical co-ordinator at Tottenham - and Fulham coach Billy McKinlay about the position, but both approaches were rejected.
And on Tuesday, Harry Redknapp distanced himself from the job following speculation he was planning talks with the club.
Berg, who was sacked by Lillestrom last October, made a big impression during discussions with Rovers earlier this week and will be handed his first managerial role in English football.
As a player, he was part of the Blackburn team that won the Premier League title under Kenny Dalglish and, in his second stint with the Lancashire side, the League Cup in 2002.
Berg won two further league titles during three years at Manchester United and is one of only three Norwegians to reach 100 caps for his country.
Since his departure from Lillestrom, the former Rangers centre-back has been working as a television pundit in Norway.
Blackburn have taken nine points from six matches under caretaker manager Eric Black, who admitted after Saturday's 1-0 win against Watford that he was unsure if he would remain in charge for this weekend's trip to managerless Crystal Palace.
"I've no idea, but it's been the same for four weeks," Black told BBC Radio Lancashire. "I'm just delighted with the response I've had from the players. They've been fantastic.
"The Wolves game [Black's only defeat] was one that disappointed everybody, but we had three away draws which I don't think were a disaster and two home wins.
"The players have shown that they're capable of getting us out of this division. I've enjoyed some parts of it and not enjoyed others, but I've enjoyed working with the players and I'll continue to work with them until I'm told not to."
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