Jorge 'Polilla' Da Silva will be confirmed as the new Penarol head coach on Tuesday after he resigned from his position at Argentine side Banfield.
The Uruguayan side have only been without a coach for a day as Gregorio Perez was dismissed on Sunday evening, largely due to the club's poor performance in the Copa Libertadores.
Da Silva, who was only in charge of Banfield for three games, had been linked with the Penarol job when Perez was in charge, but the former Valladolid and Atletico de Madrid player is now set to meet officials on Tuesday to finalise a deal.
It is not thought that he will be in charge for the Clausura match against Bella Vista on Wednesday, with Jorge Goncalvez instead taking the reigns temporarily.
Penarol have won their only league match of the campaign to date but sit bottom of their Copa Libertadores group after back-to-back losses, including a 4-0 home defeat to Atletico Nacional.
Meanwhile, Banfield are reportedly seeking compensation for Da Silva's sudden exit, and Raul Wensel will take charge of affairs until a replacement is found.