"Blackburn Rovers can confirm that Henning Berg has accepted the role of manager," the club said on their website, before adding he would be formally unveiled on Thursday morning.
Norwegian broadcaster TV 2 Sporten, where Berg, 43, has worked as a pundit since his dismissal as manager of Lillestrom in October last year, had claimed the former Rovers and Manchester United defender was offered the Ewood Park post following a successful interview on Monday.
Kjetil Rekdal told TV 2 Sporten that he expects his former Norway team-mate to be a success and welcomed the news as a boost to Norwegian football, with Stale Solbakken already employed in the Championship as Wolves boss.
"This is fantastic news for Norwegian football that we get another coach in England," said Rekdal, currently the coach of Aalesunds FK in his homeland. "It is a sign that we are doing something right.
"I think it is a great advantage that he has been at the club before and knows the environment there. He knows what is expected.
"I know Henning is a wise coach and wise strategist, and when you have been there before it is always easier to gain support for your ideas."
Berg, 43, appears to have softened his opinion of Blackburn's Indian owners Venky's, having offered a scathing assessment of their work in the wake of last season's relegation from the Premier League.
In June, he was quoted in the Daily Mirror as saying: "It's very difficult for me to see how Blackburn can expect to go up next season with how they went down last season. To stand any chance of promotion the owners have to change everything about the way they have run the club so far.
"There is no doubt none of the decisions they have taken have worked, none of them. Can they run the club from India? I would say they can't and either need to come here all the time or bring someone in to run the club."
Shebby Singh has since been appointed by Venky's as global advisor and, as the man overseeing the month-long search for Steve Kean's successor, his preference for a young, up-and-coming manager has held sway.
Approaches for Tim Sherwood and Billy McKinlay, coaches at Tottenham and Fulham respectively, were rejected earlier this month.