The 43-year-old former Ewood Park defender will take over the role vacated by Steve Kean and aim to lead the fifth-placed Championship side back into the Premier League.
Club owners Venky's will be hoping the former fan favorite will be able to lead Blackburn back into the Premier League after a disastrous spell under Steve Kean which saw the side relegated in the 2011-12 campaign.
The Norwegian centre-back enjoyed two spells as a player at the Lancashire club, making over 200 appearances for the side between 1993-1997 and 2000-2003.
A statement on the club's website published on Wednesday afternoon read: "Blackburn Rovers can confirm that Henning Berg has accepted the role of manager. Henning, a former player over two spells at the club, is set to be unveiled to the media in the morning."
Despite a strong start to the 2012-13 campaign with Rovers third in the Championship, Kean decided to leave after describing his position at the club as "untenable."
Blackburn now sits fifth in the table with 23 points after 13 games, only two short of an automatic promotion spot, and five points off of league leader Cardiff.
Berg's last managerial role was at Norwegian side Lillestrom. He took over in 2008 but was sacked in October last year after gaining only one point in eight games.
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