"Following detailed consultations on this matter at the last Board Of Governors' meeting and further telephone consultations by the PCB Chairman with Board Of Governers, discussions with Mickey Arthur were initiated and he has confirmed his acceptance of the post of Head Coach of the Pakistan National Cricket team," read a statement from the PCB.
"The modalities vis-a-vis his contract are being finalised. It is expected that Mickey Arthur will be able to join the PCB toward the end of this month," it added.
Arthur was coaching the Karachi Kings in the Pakistan Super League.
The 47-year-old will take over from Waqar, who resigned, claiming that none of his suggestions were being accepted by the PCB.
Following Waqar's resignation, the PCB invited applications from potential candidates for the position.
A panel was appointed -- comprising Wasim Akram, Ramiz Raja and Faisal Mirza -- to make recommendations to the PCB.
The post was initially offered to Stuart Law, but he turned it down citing his inability to immediately join the team.
Englishman Peter Moores had also rejected PCB's offer.
Arthur, who played 110 first class games as a batsman in South Africa, led the Proteas to the world number one ranking across all formats during his tenure as coach from 2005 to 2010.
During his stint as coach, South Africa won 13 consecutive ODIs, equalling Australia's World record.
After South Africa, Arthur was Australia’s coach from 2011 to 2013 before helming the Dhaka Gladiators in the Bangladesh Premier League.
Image: Mickey Arthur
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