Papic replaces Boebie Solomons, who was fired by City earlier this week.
"It's a done deal, Papic is our coach," says a club official.
"He is expected to start with his job today," he adds.
Papic recently resigned from Chippa United, citing interference in team matters as his reason.
City are second-from-bottom on the Absa Premiership standings with three points from five matches. They next host fellow strugglers AmaZulu on 13 September.