PCB chairman Ejaz Butt said a foreign consultant may also be appointed for Pakistan's forthcoming tour of England.
Younis, who is settled in Sydney, is likely to join the team in a week's time, The News reports.
The Pakistan Cricket Board (PCB) was under tremendous pressure to replace Intikhab Alam, who came under attack from various quarters following Pakistan's disastrous tour Down Under.
Younis was appointed as Pakistan's bowling and fielding coach for the series against Australia in which, Pakistan suffered a humiliating whitewash in both the Test and One-day series.
Earlier, Younis had said he was no longer interested in coaching the team, and that he would reveal the reasons behind the Australia debacle.
Pakistan were swamped 3-0 in the Test series and 5-0 in the one-day series in Australia and Younis said there were some ''non-cricketing reasons'' for the pitiable show.
Younis has been associated with the Pakistani team prior to the Australia series as well. During his previous tenure in 2006, he helped Pakistani bowlers to improve their techniques before resigning owing to differences with the board and officials.
New chief selector
Pakistan named former test batsman Mohsin Khan as Iqbal Qasim's successor as chief selector.
"It is a big honour for me but I also consider this position as the biggest challenge of my cricket career as the national team needs to show more consistency and discipline in its performances," Mohsin said.
The 54-year-old replaces former Test spinner Qasim who quit last month after the team were whitewashed in the Test and One-day series in Australia.
Mohsin, who played 48 Tests and 75 One-day Internationals between 1978 and 1986, said his first priority would be to pick a strong squad for Pakistan's title defence at the Twenty20 World Cup in the Caribbean in April and May.
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