Real Madrid's president, Victor Galvez, believes Guti will take over the vacant coach at Real Madrid.
Madrid are looking for new bosses after Zinedine Zidane resigned just five days after taking the club to a third successive Champions League title.
Tactics such as Mauricio Pochettino, Jurgen Klopp and Arsene Wenger have been linked to this position, but Guti is now a favorite.
The 41-year-old Madrid legend is currently in charge of Madrid's junior team, but has been on the list of coach Murcia and Scottish club St Mirren.
However, the former Spanish midfielder is now potentially training at a much better club, as Murcia's president acknowledges Zidane's resignation has thwarted his decision to appoint Guti.
"Guti will be coach of Real Madrid so he will not train Murcia I hope Zidane will stay for two more days so we can finish the deal for Guti," Galvez told reporters.
Guti recorded 542 appearances for Real Madrid during his 14-year career at the Bernabeu, helping the club win 15 trophies including five La Liga titles and three Champions League titles.