Vincenzo Montella replaces Eduardo Berizzo who was sacked just a month after it was announced he was suffering from prostate cancer.
Montella was sacked by AC Milan in November after just 17 months in charge with the Italian giants marooned in mid-table.
“Sevilla and Italian coach Vincenzo Montella have reached an agreement in principle so that he will become coach of the Sevilla first team until June 2019,” the La Liga club announced on its website.
“The deal will be completed once Montella’s lawyers have reached an agreement with AC Milan for the terms of departure of the coach from the Rossoneri.
“Once his departure is finalised, Montella will travel to Seville on Friday night to sign his contract with the club. He will lead the team in training on Saturday morning before being formally presented.”
Sevilla’s next match is away to Cadiz in the Copa del Rey on 3 January, before a home La Liga fixture with city rivals Real Betis on 6 January.
They have won just once in their previous five games, trail league leaders Barcelona by 16 points and are two points behind Real Madrid in fourth.