The long-term assistant to Brazilian coach Carlos Alberto Parreira, whose spell in charge ended when they went out of the World Cup, will be invited to discussions in the coming weeks.
The 45-year-old is the only candidate to take over as the World Cup hosts look ahead to the 2012 African Nations Cup qualifiers and bid to reach the next World Cup in Brazil, SAFA president Kirsten Nematandani told a news conference.
Mosimane, a former international striker, has been assistant coach since 2006 but before being appointed to the top post he will have to present a vision to the association's technical committee and then finalise the terms of his contract.
Nematanadani said the announcement was designed to temper increasing media speculation over who would replace Parreira.
However, the move appeared to backfire as the news conference turned into an acrimonious exchange between SAFA officials and angry local reporters, who had been anticipating the formal announcement of Parreira's assistant as coach.
Mosimane had a previous spell as South Africa's caretaker coach, winning three, drawing three and losing just one of the seven matches for which he was in charge.
He has long been earmarked as a future coach of Bafana Bafana, after a successful spell at SuperSport United.
South Africa has had 15 different coaches in the last 18 years since returning from a long-standing FIFA ban. They start the 2012 African Nations Cup qualifiers in September.
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