As revealed in SportTimes last week, the former Light Blues midfielder has emerged as the front-runner to land the newly-created position at Ibrox.
Wallace outlined his plans to overhaul Rangers' off-field structure when he unveiled his business review earlier this year, and Nerlinger is the man the Gers chief has chosen to fill the role.
But SportTimes understands Wallace will now have to explain the decision to McCoist as he seeks clarification on what Nerlinger's remit and responsibilities will be going forward. The Gers boss was lukewarm about the prospect of a director of football when asked about it earlier this year.
In his review, Wallace stated that the football operations officer would have the "specific responsibility for developing best in class football operations support".
The new man would also "support the football manager and the board and will concentrate initially on developing player talent identification, scouting and recruitment capability".
The proposed appointment of Nerlinger has been met with a mixed reaction by fans with the financial picture at Ibrox still uncertain.
The German midfielder spent three injury-hit years in Glasgow but collected SPL and Scottish Cup winner's medals before departing for Kaiserslautern in 2004.
Since retiring, the 41-year-old has forged a new career off the park. He was appointed as general manager of Bayern Munich in 2009 and, under his watch, the German giants managed one domestic double, two Champions League runner-up finishes and a domestic runner-up double.
Despite overseeing a successful period at the Allianz Arena, Nerlinger, who has held talks with Wallace, was axed two years ago and replaced by Matthias Sammer.
He is now poised to return to Ibrox and oversee Rangers' behind-the-scenes operations, becoming the link between the dugout and the boardroom.