Kocaman named new Fenerbahce coach
Kocaman, 45, played for the team between 1988-96 and was recently sporting director. He will sign a contract on Tuesday, the club said on their website.
The Istanbul team will pay Daum 2.3 million euros in compensation after cancelling his contract, European football's governing body UEFA said on its website.
"Fenerbahce have always been a part of my life and they will remain so," the 56-year-old Daum was quoted as saying. "I wish them all the best for their UEFA Champions League campaign."
That will begin in the third qualifying round at the end of July.
Fenerbahce lost the Turkish Cup final 3-1 to Trabzonspor in May and were in pole position in the domestic league until the last day of the season when a 1-1 draw with the same opponents handed the title to Bursaspor.
Daum was first in charge between 2003-06 before returning to the club in June 2009 on a three-year contract.