The former England coach has reached an agreement in principle to extend his contract with the Russian FA to 2018
Capello took over from Dick Advocaat in July last year, and he could now remain at the helm of the national side for the 2018 World Cup, which Russia is scheduled to host.
Russia’s sports minister Mutko claimed a deal is on the verge of being concluded, with the 67-year-old’s son Pier Filippo Capello expected to arrive in Moscow next week to finalise the agreement.
"I can say that an agreement in principle between the coach and the RFU (Russian Football Union) has been reached,” Mutko told reporters.
"There are several options for the date of the signing of the new agreement but probably everything will be officially formalised after the draw for the World Cup finals.”
Mutko also expressed that the extension of Capello’s contract will be beneficial to the national side. The Italian helped guide Russia to the top of their World Cup qualifying group ahead of Portugal.
He added: “We cannot lose the momentum and continuity now."
Russia currently remain unbeaten in five fixtures, and are due to play South Korea in a friendly on Tuesday.