Monaco parted company with Leonardo Jardim, who masterminded their recent Ligue 1 title-winning campaign and unlikely run the Champions League semi finals, earlier this week with the club in the relegation zone having won just one of nine games this season.
Henry has previously been linked with Bordeaux and Aston Villa but has chosen Monaco as the club at which to launch his managerial career. Henry was recently promoted to the position of assistant manager of the Belgium national team and vacated his role as a lead pundit with Sky Sports.
The 41-year-old is said to have been given assurances he will play a lead role in Monacos transfer policy with Chelseas former director of football set to be sacked after less than a year in his current role.
According to the Daily Mail, Henry will now target a move for Arsenal Under-18s coach Kwame Ampadu, the father of emerging Chelsea star Ethan Ampadu.
The former Republic of Ireland international, who played three first team games for the Gunners, worked alongside Henry during his time coaching the clubs youngsters before committing to a punditry role with Sky.
More: Arsenal FC