Zico is currently travelling to Baghdad, and FA chairman Najeh Hamoud says that the 58-year-old will discuss personal terms upon his arrival in the country.
The former Seleção star, who won 72 caps, has previously managed Fenerbahce, Bunyodkor, CSKA Moscow and Olympiacos. He was also in charge of Japan during the 2006 World Cup in Germany, and recently turned down the chance to coach Algeria.
Iraq won the AFC Asian Cup in 2007 and last month advanced to the third round of the Asian section World Cup qualifying after beating Yemen. They are without a manager since Wolfgang Sidka left after his contract expired in July.
