Reid and ex-Canada coach Holger Osieck are the frontrunners to land the job, according to the president of the Football Association of Thailand, Worawi Makudi.
"We are negotiating the details with Peter Reid of England and German Holger Osieck," Worawi told the Bangkok Post.
"A deal will be finalised in a few weeks and I will formally announce who will be the new national coach."
Reid, who led Sunderland to promotion twice during a seven-year spell with the Black Cats, has not held a manager's position since leaving Coventry in January 2005.
He faces stiff competition from Osieck, who was Franz Beckenbauer's assistant during Germany's World Cup-winning campaign in 1990 and led unfancied Canada to victory in the CONCACAF Gold Cup in 2000.
The German also led Urawa Reds to victory in the AFC Champions League last season, but was sacked by the J.League club earlier this year after a poor start to the campaign.