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The Croat is set to replace Russell Martin, who was sacked by the Saints on Sunday after their 5-0 thrashing by Tottenham.
Juric, 49, was most recently manager of Roma, who sacked him in November after just 12 matches in charge.
The Southampton job would mark Juric's first managerial role outside Italy.
His deal is said to include a summer break clause.
Club sources say Juric was one of two options in the frame as Ralph Hasenhuttl's replacement when Nathan Jones was appointed in November 2022.
The club is said to want a manager who can bring some solidity and discipline to the squad after the heavy defeat by Spurs.
Juric is unlikely to be in post for this weekend's match at Fulham on Sunday (14:00 GMT).
Southampton are bottom of the Premier League table, nine points from safety, having picked up just one win so far this season.
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