The Norwegian, who has been doing media work since getting sacked from Lillestrom in 2011, previously claimed that he would be 'mad' to take the Blackburn job due to the controversy surrounding Indian owners Venky's.
"I am happy with the club and with the direction it is going in," BBC Sport quotes Berg as saying. "It has been a frustrating time [for Blackburn] but [the] owners are ambitious.
"They want to put the club back in Premier League. My criticism was me looking from the outside, now I have spoken to the owners I am confident. Promotion is all we are thinking about. That's all we want this season."
It is believed that Berg has put pen to paper on a three-year contract at the Championship club.