The Sport Express daily said the 66-year-old Italian has been offered up to six million euros ($7.3 million) per year to take over from Dutchman Dick Advocaat , who has left the team for PSV Eindhoven.
Capello, who came to Moscow on Thursday for talks with top Russian Football Union officials, has reportedly agreed to include Russian assistant coaches in his squad.
Igor Shalimov and Dmitry Alenichev, who have experience playing with Italian Serie A clubs and both speak the language, are top contenders to join Capello's coaching team, Sport24 quoted newspaper reports, as saying.
Capello has coached Italian clubs AC Milan, Roma, Juventus and Spanish giants Real Madrid, winning domestic titles with each of the clubs, before becoming England manager in 2007.
Top Russian football officials sounded confident they could agree to terms with one of the biggest coaching names in the sport.
"Capello is ready to work conscientiously and live here in Russia. He did not make any extraordinary demands. He was pleased with the RFU's serious interest to his services," said RFU deputy president Nikita Simonyan. (ANI )