Caputo's representative, Bret Just of WME, spent Thursday negotiating terms on the deal, and an announcement is expected as soon as Friday, sources said.
Caputo, the Hurricanes' associate head coach, returns to the mid-Atlantic region where he served the first decade of his coaching career with Miami's Jim Larranaga as an assistant at George Mason.
Caputo, 41, played a significant role in building both Miami and George Mason into perennial NCAA tournament programs and comes to the Colonials with strong recruiting ties to the talent-rich Washington, D.C., area.
Caputo recently completed his 10th season at Miami, where the Hurricanes reached the Elite Eight before losing to Kansas.
George Washington dismissed coach Jamion Christian after three seasons. Caputo will be the Colonials' third head coach in the past five seasons, including Christian and Maurice Joseph (2016-19).