The Sky Blues are believed to have secured the services of the title-winning coach as they plan a revival in 2014-15
Graham Arnold is expected to be announced as the new Sydney FC coach on Thursday.
That success afforded Arnold the opportunity to take over at Vegalta Sendai, but his adventure in the J-League lasted just six league games before both parties moved to terminate the contract.
Having won the Premier's Plate and the A-League title, as well as leading the national team, Arnold told Goal he felt he'd done all he could in Australian football .
But the 50-year-old now faces the enormous challenge of leading Sydney FC back to glory after false starts under Ian Crook and Frank Farina.
Reports in The Australian and The Daily Telegraph have indicated Arnold will become the highest paid coach in the A-League and have sizeable resources to rebuild a squad which has lost Alessandro Del Piero and Richard Garcia, with more departures likely in the off-season.
Arnold will also reportedly be granted full control over football decisions at a club where a lack of a coherent strategy has repeatedly been blamed for underachievement on and off the field.
He turned rejected an approach from Perth Glory and had been in discussions with the New Zealand Football Association and the Newcastle Jets, who have since appointed former Adelaide United assistant Phil Stubbins.