The 46-year-old will serve as assistant to Serbian Milovan Rajevac, with both appointments set to be approved after consultations.
The Hamburg-born former attacking midfielder will be unveiled alongside Rajevac on Wednesday.
Addo, who represented Ghana at the 2006 World Cup, retired from football in 2008 and has since been coaching.
He started at Hamburger SV, the club he last played for and spent six years working as an assistant coach.
Between 2013 and 2015 he served as a scout for Ghana before taking up assistant coach roles at Nordsjaelland, Borussia Monchengladbach and Dortmund.
It was during his time at FC Nordsjaelland that Addo began to understand how he could best help the next generation of footballers, and he began to carve out a new role for himself.
On top of the coaching and on-pitch analysis he provided, Addo also became a mentor for the club’s youth players and provided support in their personal lives. Highly-rated youngster Erling Haaland is one of his students at Dortmund.
Sources say Addo may combine his new role with the Dortmund job.