Reliable sources close to the former leggie said that the ECB has already released Mushtaq as new chief coach Peter Moores along with skipper Alastair Cook is keen for a new support staff.
"Mushtaq has been on the ECB payrolls since 2008 but now he has been released by them and is free to take up the PCB assignment," a source said.
Mushtaq incidentally was first appointed as spin bowling consultant with the England team by Moores in 2008, who has now returned as head coach.
Saqlain had also applied for the head coach position but the board has already appointed Waqar Younis for that post.
Mushtaq, who has experience of playing and coaching in England, had expressed his interest in not only working with the Pakistan team but also at the national cricket academy.