Serbian Deputy Prime Minister Aleksandar Vucic said Strauss-Kahn is expected in Belgrade next week.
"We have agreed in principle, there are only technical details to be settled," Vucic told AFP.
Kahn, 64, will advise the government on how to bolster its ailing economy and reset its debts for an undetermined amount of time.
Kahn resigned from his post at the IMF after he was arrested in 2011 for allegedly sexually assaulting a hotel maid in New York City.
He eventually reached a financial settlement with his accuser.
However, French prosecutors have indicated that he will face trial on pimping charges along with a dozen others over an alleged prostitution ring.
Vucic is avoiding judgement and said, "I am interested in him as an expert and a man who could help Serbia."
Last year, the country’s economy shrank 1.7 per cent while unemployment jumped to 24 per cent.
Serbia’s public debt has already surpassed 60 percent of gross domestic product.