According to Norway's VG newspaper, Israel is likely to Raphael Schutz, a former ambassador to Spain, to the role.
Schutz, who currently heads the Europe section of the Israeli Foreign Ministry, was described as "one of the best" by the newspaper's sources.
"This is a sensational appointment. People at this level are usually ambassadors in one of the G8 countries, and not a small country like Norway" the source said.
Naim Araidi resigned in February after several Norwegian female employees at the embassy accused him of sexually harassing them.
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A rare non-Jew in the Israeli diplomatic service, the respected Druze poet was intended to impress on Norwegians the diversity of the country and the fact that Arab and Druze Israelis enjoy a high level of rights.