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Parma's technical director Arrigo Sacchi is set to be appointed Real Madrid's director of football.
The role will involve overseeing players coming and going at El Santiago Bernabeu, although he will not be involved with first-team affairs.
Sacchi's agent Ernesto Bronzetti has likened Sacchi's job at Real to Sir Alex Ferguson's position at Manchester United but without having a say in team selection.
Bronzetti, who held talks with Real on Sunday, commented: "His job will be like Ferguson's, but he won't be on the team's bench."
Real have confirmed that discussions with the Italian tactician have taken place over the past few weeks and that he is the club's prime candidate to fill the position.
Sacchi, who has previously managed Italy and Serie A giants Milan, will work under Real's sporting director Emilio Butragueno in Madrid.
"For several weeks the president Florentino Perez and Butragueno have been analysing the possibility of creating a post for a figure who can co-ordinate football at Real Madrid," read a club statement.
"In the last few days, the Italian coach [Sacchi] has emerged as the leading candidate.
"His possible appointment will be discussed at a meeting of the club's directors later today [Tuesday].
"Sacchi would be responsible for football under the direction of Emilio Butragueno."
David Beckham claims not to understand the reasoning behind Real Madrid's appointment of Arrigo Sacchi.
The Italian arrived at the Santiago Bernabeu last week as director of football to work above coach Mariano Garcia Remon.
His brief is to oversee the running of football matters and help plot the club's transfer strategy, but Beckham believes his presence could serve to further complicate the club's structure.
Indeed, the England skipper hinted he felt Sacchi could undermine the position of Garcia Remon.
"If I'm honest I don't understand it too well," Beckham stated.
"I don't know why he (Arrigo Sacchi) has been called for.
"It's probably because we need stability and a manager who will take decisions.
"Sacchi is a person with a lot of football experience who could give good things to the club and to the players, but he doesn't know the situation here.
"I've come from a team where the overall manager (Sir Alex Ferguson) was the coach as well and so this thing that has been created at Real Madrid doesn't seem normal."