Serbia have been managed by caretaker coach Radovan Curcic since they failed to qualify for Euro 2012 after a poor campaign which led to the departure of Vladimir Petrovic.
"We have every intention of keeping our promise to name a new coach by the end of this month and the FSS believes Mihajlovic is by all means the right man for the job," Karadzic told Belgrade media.
"There are a few minor details to be sorted out, namely financial matters and Mihajlovic's assistants who are to be approved by the FSS executive board.
"We also spoke to a dozen or so Serbian first division coaches to get their opinions and they all supported the motion to name Mihajlovic, whom we have met with four times already in the past month to discuss his terms."
The 43-year-old was Roberto Mancini's assistant at Inter Milan from 2006-2008 after ending his career at the club, having also played for their Serie A rivals AS Roma, Sampdoria and Lazio.
