The Kochi side have offered the 55-year-old the job to succeed Steve Coppell in charge, having also considered Billy McKinlay for the role.
Pearce is a prominent name in England, having had a successful career as a defender for the likes of Nottingham Forest, Newcastle United and Manchester City, and can boast 78 caps for the English national team.
Former Manchester City defender Pearce guided Engand's U21s to the 2009 Euro final before being appointed as coach of the senior team for one game after Fabio Capello's resignation, overseeing a 3-2 loss against Netherlands in 2012.
His last managerial job was at Nottingham Forest, who sacked him in February 2015 after a disappointing campaign in the Championship.
Pearce is not Blasters' first English manager, following in the footsteps of David James, Peter Taylor, Trevor Morgan and English-born Ireland international Terry Phelan.