Marcello Lippi held talks with the Ukrainian FA in Geneva regarding the national team job, according to La Gazzetta dello Sport.
Earlier this week, the President of the Ukraine FA Grygory Surkis called reports linking Lippi with the post "inventions without sense."
But La Gazzetta claims the pair met in Geneva last night before Ukraine's friendly with Switzerland and that an offer has been made.
A photo was even taken of the pair sitting together in the stands.
Surkis is keen to land a big name ahead of Euro 2012, which Ukraine will host with Poland.
However, he may face competition for Lippi's signature, as Greek side AEK Athens also made a reported inquiry at the end of last week.
Lippi is keen to get back into management, but he has intimated in the past that coaching abroad isn't his cup of tea as the language barrier is too limiting.