The Ulsterman is currently in Melbourne and was finalising terms with Victory officials yesterday. Magilton will be in the stands for Victory's game with Newcastle Jets and could be confirmed as new coach before kickoff.
Magilton, who came through at Liverpool before forging a career as a midfield playmaker at Southampton, had been working at Shamrock Rovers with Michael O'Neill as an assistant, but was eager to jump back into frontline management.
It's understood the job with Victory will only be to the end of this season. Sky Sports says longer terms will be discussed should both parties be satisfied during the interim period.
Magilton enjoyed success at both QPR and Ipswich, where his teams were well known for their exciting, passing brand of football.
Magilton, 42, succeeds the sacked Mehmet Durakovic as head coach and will count on Kevin Muscat as his No2. Former Malaysia technical chief and Liverpool coaching adviser Ron Smith is also expected to be named as new football director at Victory in the coming days.