Domenech, 68, left his role as les Bleus boss after finishing bottom of the group and a player revolt in South Africa and last coached a club side in 1993.
“The final details have been sorted and all will be made official this weekend,” the Breton side said three weeks after sacking Christian Gourcuff.
Domenech, who has become a pundit on French television, will be the 15th man in charge of the Canaries since president Waldemar Kita arrived at Stade de la Beaujoire in 2007.
Nantes sit in 16th spot in Ligue 1, three points off the relegation zone, and next host fourth-placed Rennes on January 6.
