Julian Nagelsmann has reached an agreement with Bayern Munich, but RB Leipzig is demanding a world-record fee for their manager, according to Sky in Germany.
Bayern made contact with their rivals on Sunday and agreed on terms with the 33-year-old.
The clubs must now agree to a fee, with Leipzig demanding €25m.
Nagelsmann had been linked with Tottenham Hotspur, but his preference has always been to remain in the Bundesliga.
Widely regarded as one of the best young coaches in the world, he led Leipzig to last season’s Champions League semi-finals. The club is on course to finish second behind Bayern in the league this campaign.
Nagelsmann will replace Hansi Flick, who asked Bayern to terminate his contract at the end of the season, after several disagreements with sporting director Hasan Salihamidzic.