The former Manchester City midfielder will travel to Algiers to sign a contract replacing Rabah Madjer, who resigned in June, the Algerian Football Federation said.
French-born Belmadi, 42, played for Algeria between 2000 and 2004, including a quarter-final place at the 2004 African Nations Cup finals.
His club career started at Paris St Germain and included stints at Olympique Marseille, Celta Vigo in Spain, Manchester City and Southampton.
His previous coaching experience has been restricted to Qatar where he has managed the national side as well as several clubs.
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Belmadi is the seventh coach of Algeria since they reached the second round of the 2014 World Cup in Brazil, reflecting a turbulent last four years for the side.
His first assignment will be away against the Gambia next month as Algeria resume their bid to qualify for next year’s Nations Cup finals.
(Reporting by Mark Gleeson in Cape Town; Editing by Amlan Chakraborty)
