The experienced Brazilian will sign his official contract "in the next few days", a member of the federation confirmed to AFP.
According to local press reports Ricardo, who guided Vasco Da Gama to Brazilian Cup glory this season, has agreed a three year deal worth $9 million.
Ricardo has already coached at club level in Saudi Arabia as well as spells in France with Bordeaux, Paris Saint Germain and Monaco, and Sao Paulo and Vasco da Gama in his native Brazil.
Born in Rio in 1964, he played for three clubs, Fluminense, PSG and Benfica, before turning to management in 1996.
Saudi Arabia have been without a manager since the sacking of Portuguese boss Jose Peseiro after his side crashed out of January's Asian Cup in Qatar, losing all three games.