Former Spain manager Javier Clemente is expected to take over as head coach of the Serbian national side, according to reports in the Serbian press.
The Sportski zurnal said Clemente would sign a two-year contract on Friday worth €700,000 a year.
“Clemente is our new coach,” the newspaper said.
Clemente won two Spanish league titles in the first of his three spells with Athletic Bilbao and enjoyed an impressive run of 31 unbeaten games while in charge of Spain 1992-1998.
Serbia and Montenegro played as a unified team at the World Cup in Germany despite Montenegro voting for independence from Serbia just before the finals started.
They were knocked out of the finals at the group stage, with a 1-0 defeat to Holland, a 6-0 thrashing by Argentina and a 3-2 loss to Ivory Coast. The disappointing showing led to coach Ilija Petkovic stepping down.
Serbia have been drawn in group A with Portugal, Poland, Belgium, Finland, Kazakhstan, Azerbaijan and Armenia.