The 72-year-old is set to return for a fourth spell in charge of the German champions, who he led to a Bundesliga, German Cup and Champions League treble in 2013.
Heynckes retired after that successful season but is believed to have agreed a contract until the end of the season.
Bayern sacked Ancelotti as manager following last month's 3-0 defeat to Paris Saint-Germain, with his assistant Willy Sagnol taking charge of the team on an interim basis.
They drew 2-2 at Hertha Berlin last Sunday, leaving them five points behind leaders Borussia Dortmund.
Former Dortmund boss Thomas Tuchel had been strongly linked with the Bayern job, as was Hoffenheim's Julian Nagelsmann.
Bayern's next fixture is at home to Freiburg on October 14, and four days later they welcome Celtic to the Allianz Arena in the Champions League
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