Monchi left Roma last week amid a restructure at the Italian club, following their disappointing exit to Porto in the Champions League.
The 50-year-old built up a fine reputation at Sevilla with their extraordinary buy-and-sell policy, turning major profits on the likes of Dani Alves, Ivan Rakitic, Carlos Bacca and Seydou Keita.
Arsenal are believed to be interested in reuniting him with Unai Emery at the Emirates Stadium after Sven Mislintat's premature departure, but Sevilla are also in need of a sporting director after previous incumbent Joaquin Caparros took over as caretaker manager following Pablo Machin's sacking.
"Sevilla now needs a sports director, we have looked for the best and the best is Monchi," Sevilla president Jose Castro said of the man who spent nine years as the club's goalkeeper before retiring aged 30.
"Our conversations have gone well with him, the conversations have been very receptive.
"We believe Monchi is the best choice and we’ve started negotiations with him.
"His receptiveness has been extraordinary. We have to agree on future plans, but both parties are optimistic."
Ajax's current director of football and former Arsenal star Marc Overmars has been touted as another potential option in north London.
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