United owner Massimo Cellino said earlier this month that the club's next boss would be British and he looks to have plumped for Hockaday, who spent four years with Rovers.
He left after a disappointing start to last season in which they lost seven out of eight games, but is now set to take over at Elland Road following the departure of Brian McDermott at the end of last month.
Cellino told Sky Sports on June 5: "I have always said I wanted a British coach for this club. I am a man of my word and that is still the case."
The Italian also reiterated that he wanted a coach rather than a manager to replace McDermott.
"I want someone to take care of the preparation of the team, the training, the tactics and so on," he said.
"Not the recruitment or the contracts, which I will take care of. The job is a coach, not a manager, which is an important difference."
Hockaday, 56, was a right-back as a player, featuring in over 600 games for Blackpool, Swindon, Hull City, Stoke and Shrewsbury.
He joined Watford as U18 coach in 2000 and helped develop players such as Manchester United winger Ashley Young.
He moved on to take up coaching roles at Leicester, Southampton and Cheltenham Town before he was given his first managerial appointment at Conference side Forest Green Rovers in 2009.