Xinhua reported that both sides have reached an agreement and are finalizing details.
Meanwhile, the association has started its search for a new head coach and backroom staff.
The Chinese national team will compete in the East Asian Cup in July, and has three Asian Cup qualifiers to play in October and November.
Among the many domestic and foreign candidates is fan favorite Marcello Lippi, the Italian coach who has led Chinese club Guangzhou Evergrande to much success over the past two seasons.
However, the 65-year-old has told Evergrande players he will not consider any offer before his current contract ends, unless club owner Xu Jiayin receives instructions from higher up, Soccer News reported.
Coaches in the Chinese Super League have also turned down the chance of taking the national team's helm, including Gao Hongbo, Camacho's predecessor, who is now at Shanghai East Asia, and Shanghai Shenxin coach Zhu Jiong.
Fu Bo, who manages the China Under-22s, is likely to be appointed caretaker of the national side until a full-time replacement is found.
Childhood in an isolated sterile room
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