Blackwell was head-hunted from Sheffield United during Peter Reid's time last year and remained as head coach in Eddie Gray's six months as caretaker boss.
Now the Leeds board have decided to give him his first go at management. An announcement is expected today.
Critics will suggest Blackwell is merely the cheapest option, although the 45-year-old has a growing reputation within the game and he knows the First Division scene through his time with Neil Warnock at Sheffield United.