City A.M. understands that business, innovation and skills (BIS) committee member Jonathan Reynolds will be handed the role, replacing Richard Burgon, who was promoted to shadow justice minister during the summer.
The appointment is the first major recruit to Corbyn's team since MPs began dramatically dropping out of his shadow cabinet following the European referendum, since when the Labour leader has struggled to fill his vacancies.
And Reynolds' appointment is particularly significant because he comes from the centre-left of the Labour party, having previously been a vice-chair of campaign group Progress.
Reynolds, who was elected MP for Stalybridge and Hyde in 2010, resigned from Labour's frontbench in January in protest over Corbyn's leadership, having served as the shadow railways minister.
Reacting to the news, small business minister Bill Esterson told City A.M: "It's enormously reassuring that we've got the party working together in the interest of the country, and Jonny will be a really fantastic shadow City minister."
Shadow chancellor John McDonnell declined to comment. Corbyn told City A.M. that fresh appointments would "happen after conference".