The 36-year-old midfielder received a host of proposals from across the world, but it is understood he has decided to accept an offer from the new MLS franchise, which is part-owned by Manchester City chief Sheikh Mansour.
It is thought Lampard was highly impressed with the club’s vision and he is expected to sign a contract with the franchise next week.
The New York club was formed in May 2013, but will not start competing in the American league until March 2015.
As a result, Lampard could spend some time with New York’s sister club Melbourne City FC over the next few months.
Lampard is currently taking a short holiday with his fiancee Christine Bleakley.
During his 13 years at Chelsea, Lampard became the club’s all-time record goal scorer and won three Premier League titles and the Champions League, plus the Europa League and four FA Cups.
The midfielder was part of Roy Hodgson’s 23-man World Cup squad, but he only made one appearance – in England’s dead rubber draw against Costa Rica.
The former West Ham man has said he will take a few weeks to decide whether he wants to continue playing for England.