The former England manager is understood to have held talks with Dyke on two occasions and the FA chairman is expected to make the announcement at the Leaders in Football conference in London this morning, which you can follow live on Sky Sports News.
Dyke, who took over as chairman in July, believes action is needed to address the reduction in the number of English players featuring in the Premier League.
Hoddle, who works as a Sky Sports pundit, has been outspoken over the issue in the past, saying: "We've got foreign owners, who bring in foreign managers, who bring in foreign players above English players and it's a downward spiral.
"It really is a concern. The pool has gone down from 48% in 1998-99, when I was England manager, to 32% this season.
"The England manager's job is a hard job as it is and it's going to get harder and harder unless we re-address it with a rule change."