The Championship outfit are expected to unveil the former England Under-21 boss in a press conference this afternoon.
The 51-year-old, who spent 12 years at the City Ground as a player, initially rejected the chance to become Billy Davies's successor due to personal reasons.
However, Pearce has made a U-turn and will take charge of the club from July 1 following an announcement made by Al Hasawi on his official Twitter page.
I am absolutely thrilled to confirm Stuart Pearce will become our manager on 1 July. Welcome home . #nffc— @FAWAZ_ALHASAWI (@fawaz_alhasawi1) April 3, 2014
Gary Brazil is expected to see out the remaining seven games of the campaign with the first team.