Paris: Fabio Capello is set to be announced as the new manager of French club Paris Saint-Germain, according to a report in ESPN Soccernet.
Current PSG manager Carlo Ancelotti would then be allowed to make his highly-rumoured move to the vacant position at Real Madrid.
Current Russia national team boss Capello has been chosen ahead of Tottenham's Andre Villas-Boas, with the young Portuguese coach rumoured to have resisted the French club's overtures.
But Capello's tenure at the Ligue 1 champions could be short lived as PSG are only set to offer him a one-year deal. This is due to the fact that PSG remain in the hunt to lure Arsenal manager Arsene Wenger when his contract expires at the end of the season.