Martin Jol has emerged as first choice to become the new Hamburg coach, with the Bundesliga club looking to finish the season in fourth place.
The club's board of directors are due to meet on Tuesday to discuss the details of an offer made to Jol, club chairman Horst Becker has told the Welt newspaper.
If the deal is approved, Jol could be named as Huub Stevens' successor on Wednesday, just days before the end of the current German season.
Stevens will leave the club this summer to take over at PSV Eindhoven and HSV have been on the lookout for a new coach since his announcement last December.
Hamburg are currently fourth, above Stuttgart on goal difference, and need to finish in the top five to qualify for next season's UEFA Cup.
Dutch coach Jol, 52, has been out of work since being sacked by Tottenham in October after a three-year spell in charge
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