Hockey Canada has scheduled a news conference in Calgary on Tuesday to make the announcement.
It's a natural step for the 41-year-old Yzerman, who is currently a vice-president with the Detroit Red Wings and is considered a strong candidate to help assemble Canada's team for the 2010 Olympics in Vancouver.
Yzerman already has a wealth of international hockey experience.
He was an integral part of Canada's champion team at the 2002 Olympics in Salt Lake City, despite essentially playing on one knee.
He first represented the country at the 1983 world junior championship and won a bronze medal. A year later, he won the Canada Cup.
Yzerman played for Canada at the IIHF world championship in 1985 (winning a silver medal), 1989 (silver) and 1990, when he was named the tournament's top forward after racking up 10 goals and 20 points in 10 games.
He also represented Canada at the 1998 Olympics and 1996 World Cup of Hockey.
The Ottawa native retired last summer after winning three Stanley Cups and playing 22 seasons in Detroit, where he was the Red Wings captain from 1986 to 1987 until his retirement. No one has ever worn the 'C' for a single team longer.
Yzerman's No. 19 was retired earlier this month by the Red Wings in an emotional ceremony at Joe Louis Arena
If he has any questions about serving as Team Canada's GM at the world hockey championship, he won't to go very far to get them answered. Ken Holland, Detroit's vice-president and GM, performed the job last year in Riga, Latvia.
That team, which was led by tournament scoring leader Sidney Crosby and captain Brendan Shanahan, lost the third-place game to Finland and finished fourth.
Canada won silver at the 2005 world championships and gold in 2004 and 2003.
The Canadian men open the 2007 tournament with a game against Germany on April 28.