National Selection Commission President Rafael Ferrari said Wednesday that "Osorio is the ideal person to lead Honduran football."
Osorio met over the weekend with Ferrari and the president of the Honduran Football Federation before returning to his native Colombia.
Osorio's 2007-2009 stint with the New York Red Bulls ended badly. The team won five times in 30 league matches in 2009, a year after playing for the MLS championship.
He now coaches Colombian champion Once Caldas. Osorio had said if he got the Honduran job, he would start in the summer in order to fulfill his contract with Once Caldas.