Eriksson, who has also been strongly linked with the Iraq job, is said to have demanded an annual salary of €1.9 million, while the Cameroon Football Federation (Fecafoot) is negotiating for a lesser amount.
The reigning African champions are with no substantive coach since last December when Belgian Hugo Broos was sacked following the team's failure to qualify for the 2018 Fifa World Cup.
Alexandre Belinga is currently the interim coach of the Indomitable Lions, who have never been led by an African coach at Afcon finals since Jean-Manga Onguene in 1998.
With the resumption of the 2019 Afcon qualifiers just two months away, the search for a permanent coach has gathered pace.
Cameroon are the hosts of the 2019 finals and are only taking part in the qualifiers to earn some game time.
Eriksson has appeared as the frontrunner for the Cameroon job after reported targets Welshman John Toshack, German Antoine Hey and Carlos Quieroz committed themselves elsewhere.
According to reports from Cameroon, Frenchman Alain Giresse could be considered if Eriksson does not to agree terms with Fecafoot.
The Swede’s arrival in Yaoundé on Thursday heightened speculation on his possible appointment as Cameroon coach.
“This Thursday, we have learnt that a breakthrough is imminent, with the possible signature of a tactician who has not gone through the process of being shortlisted for the job, Sven-Goran Eriksson,” reported Camfoot.
“He is reported to have offered his services to Cameroon, and would like to lead the Indomitable Lions at the 2019 African Cup of Nations, and qualify the national team for the 2022 World Cup.”
An unsuccessful stint with Ivory Coast at the 2010 Fifa World Cup finals is Eriksson’s only experience in African football.
Mexico are the only other national team Eriksson has worked with before.
Cameroon travel to Comoros in September for an Afcon qualifier.