Another Australian, Yorkshire coach Jason Gillespie, had been the hot favourite to succeed Peter Moores.
But Australian media has reported that Andrew Strauss, England???s new director of cricket, has instead turned to Bayliss, one is one of the most experienced, successful and widely travelled coaches in world cricket.
There has been no official word yet from the ECB, Bayliss, or Gillespie.
Bayliss is the New South Wales coach and has won multiple Sheffield Shield titles.
He has plenty of international experience ??? he coached the Sri Lanka national team which reached the World Cup final in 2011, and led the Australia ODI side to victory in last November???s series with South Africa.
He has also coached the Sydney Sixers to victory in the inaugural Big Bash, and the Kolkota Knight Riders to the Indian Premier League title.
He is a trusted adviser of Australia???s current Test coach Darren Lehmann and is perfectly placed to prepare England for the Ashes ??? no fewer than nine of his New South Wales team are in the Australia tour squad.
His appointment would come a surprise. Gillespie was widely expected to be the front-runner following confirmation that he was in talks with the ECB.