Neill, 33, has been on the lookout for a new club since his contract with Turkish giant Galatasaray expired at the end of last season.
After being linked strongly with a move to the Middle East in recent weeks, UAE newspaper The National reported on Friday Neill had agreed to a one-year deal and was on his way to Abu Dhabi.
The report said the club was also poised to unveil Belgian Franky Vercauteren as new coach.
Neill's reported move comes despite his effectively ruling out a move to the Middle East or the A-League at the Asian Cup in January.
"Too soon for Australia, too soon for the Middle East," Neill said at the time.
After his contract with Galatasaray expired he was linked briefly with a move to newly-promoted Premier League club Queens Park Rangers or a switch to Major League Soccer in the US.
He becomes the second high-profile Australian player within a week to join a UAE club after Mark Bresciano ended more than a decade playing in Italy to link with Al Nasr.
Neill will fill one of his UAE club's permitted Asian player spots as part of the "three-plus-one" rules set out by the Asian Football Confederation, allowing teams to sign four foreigners, with one coming from Asia.
Neill played in Australia's international friendly win over Wales earlier this month and plans to continue for the national team heading towards the 2014 World Cup in Brazil.