The 67-year-old is now the clear favourite to succeed Real Madrid-bound Carlo Ancelotti in the Parc des Princes hot-seat following Andre Villas-Boas' decision to stay at Tottenham
The French giants look set to lose Carlo Ancelotti to Real Madrid in the next few days following the Italian's decision to join los Blancos, with the 67-year-old emerging as the favourite to succeed his countryman.
According to Sky Sport Italia, PSG have agreed to pay the €3 million (£2.5m) necessary to release Capello from his contract with the Russian FA, with a lucrative one-year deal currently in the works.
Capello's son and agent Pierfilippo was believed to have travelled to Paris on Tuesday to apply the finishing touches to negotiations with sporting director Leonardo, and an appointment now appears to be imminent.
The former Juventus and AC Milan coach was as big as 16/1 with BetVictor less than 24 hours ago, but all betting markets on the Italian joining les Parisiens have now closed.
The Rouge-et-bleu initially pinned their hopes on Andre Villas-Boas replacing Ancelotti, but the Portuguese trainer opted to stay loyal to Tottenham - as Goal exclusively revealed.
The switch to PSG marks Capello's return to club football for the first time since leaving Real Madrid in 2007, having spent the past six years on the international scene with England and Russia.