Solari set to join Penarol
Should the deal go through, Solari will join Marcelo Gallardo in the Uruguayan first division after his former Argentina team mate left River Plate in the off-season to play for Penarol's arch-rivals Nacional.
"Talks are well advanced, with a verbal agreement with the president of Atlante," Penarol vice-president Edgar Welker said.
"I spoke to Solari yesterday and he was very happy, motivated, keen to come here," Welker told Uruguay's Sport890 radio.
The 33-year-old Solari, who began his professional career at River Plate, joined Atlante from San Lorenzo last year after a decade in Europe at Atletico Madrid, Real and Inter.
Penarol, five times Libertadores Cup winners, are taking part in this year's Copa Sudamericana, South America's equivalent of the Europa League, after a six-year absence from international competition.