The B team coach, who also once served as caretaker boss at first-team level, has been performing the role temporarily since last year when Zeb Jacobs left for Feyenoord.
New Gers sporting director Kevin Thelwell had been keen to bring in Gareth Prosser from Everton, the pair having worked together at the Toffees.
But Prosser is believed to have lucrative offers on the table from the Middle East.
And Thelwell has been impressed with the ongoing work McCallum has been doing, believing him to be the man to improve the development of young players at Auchenhowie, reports the Daily Record.
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Thelwell has already brought in former Everton man Dan Purdy as technical director, with Nils Koppen moving on.
The sporting director has a number of other key positions to fill but looks set to complete one of them with McCallum.
The 47-year-old was with Queen's Park before joining the Ibrox club as academy manager and B team boss.
He also led the first team on an interim basis after Steven Gerrard left for Aston Villa and before Giovanni van Bronckhorst eventually took over.