Investment banker Brandao, who has around 20 years experience with HSBC, Citi and others, will replace Rubem Novaes, who tendered his resignation last month and will leave later in August.
Local media, including newspapers Valor Economico and O Globo, had reported earlier on Saturday that Economy Minister Paulo Guedes has given the green light to Brandao's nomination, but it will not be officially announced for a few days.
Neither Banco do Brasil or the Economy Ministry responded to requests from Reuters for comment.
Speaking on condition of anonymity, the source said Brandao has accepted the offer.
"He has a Roberto Campos Neto profile. He is young and is ready to streamline, modernize and digitalize the bank," the source said, referring to the president of the central bank who also came from the investment banking world.
"In addition, he is an experienced, competent, technical, discreet and non-political banker," the source said.
The government has been seeking as a replacement executives with backgrounds both in finance and technology to handle fiercer competition among banks and fintechs.
By Rodrigo Viga Gaier