After missing out on a return to Aston Villa when David O'Leary was named as Graham Taylor's successor, Little is now set for Spotland.
Paul Simpson quit the club at the end of the season, and Little is rumoured to be taking over the reigns next week.
However, a spokesman denied that Little has got the job: "The story as it stands is wrong. It's not at all certain that anyone will be appointed next week. We've got a another board meeting before any appointment is made."
City reached the play-offs in Little's first season at Boothferry Park in 2000/01, but he was sacked the following year after a run of bad results.