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Montella was sacked by AC Milan in November after just 17 months in charge with the Italian giants marooned in mid-table.
“Sevilla and Italian coach Vincenzo Montella have reached an agreement in principle so that he will become coach of the Sevilla first team until June 2019,” the La Liga club announced on its website.
“The deal will be completed once Montella’s lawyers have reached an agreement with AC Milan for the terms of departure of the coach from the Rossoneri.
“Once his departure is finalised, Montella will travel to Seville on Friday night to sign his contract with the club. He will lead the team in training on Saturday morning before being formally presented.”
The 43-year-old former Italian international striker has also coached Roma, Catania, Fiorentina and Sampdoria.
He joins a Sevilla side who are fifth in La Liga 16 points behind leaders Barcelona.
They also face Manchester United in the Champions League last 16 next year.
Former Argentine international Berizzo underwent cancer surgery last month.
Sevilla aren’t in action again until they face Cadiz in the first leg of their Copa del Rey last 16 tie on January 3.
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