The former Zimbabwe and Kenya handler is reported to have been chosen ahead of two Frenchmen; however he says that no deal has yet been signed.
A director at the Benin Football Federation said the German will be handed the job because the federation believes he has more experience of African football.
“We have retained Fabisch to coach the Squirrels after looking at the three dossiers of the coaches on the short list.”
“We have gone for him because he knows African football better than the other two, Jean Francois Domergue and Bernard Simondite.”
The country had also been in contact with the vastly experienced Philippe Troussier, but they backed out after reports emerged that Troussier had been short-listed to coach the Australian national team.
Benin is in Group B along with Nigeria, Ivory Coast and Mali.
Meanwhile, former Germany international Steffen Freund has been named as a new assistant to Nigeria coach Berti Vogts.
Freund, who is the current Germany Under-20 coach, replaces his compatriot Thomas Hassler who quit last month.
Freund, who was part of the Germany squad that won Euro 96 under Vogts, will begin work in the New Year; will be part of the Super Eagles technical bench at the African Nations Cup next year.