According to sources in the PCB, Inzamam reached a deal after he agreed to lower his monthly salary to 8 lakh rupees from the 1.2 million, he was getting from the Afghanistan board.
The PCB is set to announce his name as the new chief selector tomorrow after he resigned as head coach of the Afghanistan cricket team.
PCB chairman Shaharyar Khan confirmed that Inzamam would be the new chief selector and all issues surrounding his release from his contract with the Afghanistan cricket board had been resolved.
Inzamam a veteran of 120 tests and 398 one-day internationals came up as a surprise choice for the chief selector's position after other names including those of former Test players Mohsin Khan, Iqbal Qasim and Moin Khan were tipped for this position.
Shaharyar said that Inzamam would be given the opportunity to select the other members of his selection committee and he had also advised the board to include the captain and coach in the selection process in future.
Inzamam, who last year signed up with the Afghanistan team as their head coach, has enjoyed success with them as the minnows in the recent World T20 upset the eventual champions, West Indies in the group matches.
Media reports claimed that Inzamam had emerged as the surprise candidate for the coveted post after advice from the Prime Minister's secretariat to the PCB but Khan dismissed these reports insisting it was the board's decision to approach the former captain.
Inzamam has in the past worked as batting consultant for the board for a few days but has never accepted a permanent position.
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