A source at United told KickOff.com that Dlamini, who worked as an assistant to Roger de Sa at relegated Platinum Stars in 2017/18, is set to replace Ashwin Sutton at the Mpumalanga-based club.
"Ja, no he is here now," the informant said.
"Ashwin is no longer with us, they have replaced him with Milton. But that will only come out at the end of this month of course.
"The club and Ashwin agreed to part ways long before."
Dlamini, however, said: "No, I don't know [about his future with his current employers]. I will know after my contract finishes, then I will take it from there. Any team interested, they are welcome."
Dlamini's contract with Stars - which has been renamed Cape Umoya United - runs until the end of the month.
Mbombela finished 13th in the second tier last term.