Julian Nagelsmann has agreed personal terms with Bayern Munich but RB Leipzig are demanding a world-record fee for their manager, according to Sky in Germany.
Bayern made contact with title rivals Leipzig on Sunday and agreed terms with the 33-year-old.
The clubs must now agree a fee, with Leipzig demanding €25m.
Nagelsmann had been linked with the vacant managerial post at Tottenham but his preference is to remain in the Bundesliga. He was born in Landsberg am Lech, which is less than an hour west of Munich, and recently built a house near the city.
Nagelsmann has been named ‘Baby Mourinho’ and has developed a reputation as one of the best young coaches in Europe.
He took RB Leipzig to last season’s Champions League semi-finals and they are on course to finish second behind Bayern in the Bundesliga this campaign.
Nagelsmann will succeed Hansi Flick, who last week asked Bayern to terminate his contract at the end of the season after several disagreements with sporting director Hasan Salihamidzic.
Joachim Low will leave his position as manager of the Germany national team at the end of this summer’s European Championship and Flick has been one of the names linked with becoming his successor.