"His appointment is confirmed and he should take over next week as chairman of the cricket interim committee," a senior presidential official, who did not want to be named, told AFP.
The 44-year-old, currently a government legislator, became a legendary figure after leading Sri Lanka to their lone Cup triumph in 1996. He quit international cricket in 2000 after playing 93 Tests and 269 one-dayers.
Political sources said the former captain got the new job as a reward for voting in favour of the government's 2008 budget this month, despite reports that he had threatened to defect to the opposition.
Ranatunga is also tipped to become the deputy foreign minister in the government reshuffle, expected to take place early in the New Year.
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He has been critical of the current cricket administration, which he blames for the dwindling of Sri Lanka's talent and reserve stock to replace the ageing national team. .