The former Australian Test captain, who last month replaced New Zealander John Wright as India's coach for two years, will be given a daily allowance equal to that of a player during matches, the Times of India reported Tuesday.
"The contract details are all worked out and Board secretary S Karunakaran Nair will hand it over to Chappell when he comes to India," Board of Control for Cricket in India (BCCI) president Ranbir Singh Mahendra told the paper.
Chappell is scheduled to arrive in India this month to prepare the team for a triangular One-day series in Sri Lanka in August.
Wright was preferred to Chappell in 2000 reportedly because the BCCI felt the Australian was too expensive, but Mahendra said the new coach would be getting "the same package which we had for Wright".
Chappell will receive an annual travel allowance not exceeding 860,000 rupees (20,000 US dollars), a share in logo money, communication expenses when with the team, a flat and 70 days annual leave.
"We are already looking for a well-furnished flat (in Bangalore) for Chappell and his wife," Nair said.
The former Australian batting great will be also be allowed to express his views through a newspaper column or a news channel.
"But he is not permitted to leak out any team secret," the Times of India added.
Chappell, who scored 7,110 runs in 87 Tests with 24 centuries, has already requested the BCCI to have Australian psychologist Charles Krebs and sports scientist Ian Frazer in his support staff.
"From our side, we will provide each and every thing to him according to the needs of the team," said Mahendra.