The 42-year-old Italian is set to replace Paul Hart, who left three weeks ago, at the County Ground as the Robins prepare for life in the bottom tier of the npower Football League following relegation from League One this season.
Di Canio, having been linked with the vacancy at former club West Ham, will now begin his managerial career with the Wiltshire outfit, who were in the Barclays Premier League 18 years ago.
Di Canio was one of eight prospective managers shortlisted and subsequently interviewed last week by interim chairman Jeremy Wray for the Town vacancy, with others believed to include George Burley and Dietmar Hamann.
But the lure of the passionate Rome-born former striker has proved too strong and it is understood he accepted the position on Thursday.
A formal announcement is expected around midday today and, with the finer details of the agreement to be ironed out, he will be unveiled early next week.
Di Canio, who was working as a pundit in his native Italy, has been keen to move into the dugout for some time although many anticipated his managerial bow to possibly be made higher up the football pyramid.
Source: PA
Source: PA