Dorival, 55, agreed to personal terms on Wednesday after two days of negotiations, club president Carlos Silva said on Twitter, reports Xinhua news agency.
It is understand that he will be tied to the club until at least December 2018.
Ceni departed after Sao Paulo's 0-2 loss to Flamengo on Sunday, a result that left the club 17th in Brazil's 20-team Serie A standings.
The former goalkeeper led the club to 14 victories, 10 draws and 11 defeats during his six months of remaining in charge.
Dorival was sacked as coach of Sao Paulo's Serie A rivals Santos in June.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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