The 54-year-old is poised to replace Roger Arnott, who parted company with Hearts last week. Club officials are seeking to make a quick appointment and McAvoy is the man in the frame.
He is currently out of work after being dismissed by Preston last month and is eager to return to football having previously been youth academy director at Hamilton Academical.
He worked with Hearts’ sporting director Joe Savage at Hamilton, Preston and Norwich City whilst first-team coach under Alex Neil.
McAvoy took charge of Preston on an interim basis when Neil left in March last year. He got job on a permanent basis two months later but was then relieved of his duties in December.
Hearts are now set to bring him back to Scotland to oversee the entire youth system at Riccarton. He will be responsible for the children’s academy and the age-group level teams below the professional squad.
Tynecastle officials want the club to produce more players for the first team in years to come and are determined to put a long-term structure in place to nurture home-grown talent.
Euan Henderson, Finlay Pollock and Scott McGill are among the recent academy pupils to graduate and make senior debuts. All three have been on the periphery of manager Robbie Neilson’s first-team squad of late.
McGill is currently on loan at Airdrie and Henderson spent the first half of the campaign with Alloa Athletic.