A formal announcement is likely by the end of the week.
In addition to Shine, source say there are at least three candidates who have been in discussions with White House officials.
A former longtime executive at Fox News, Shine, was ousted last spring amid a major shakeup at the network because of sexual harassment scandals. Shine was never personally accused of harassment, but questions were raised about his handling of the accusations.
Shine is very close with Fox News primetime star Sean Hannity, a close ally of Trump. After his dismissal from Fox, Shine was a guest of Hannity at a White House Christmas party.
Shine's new post comes nearly four months after the former communications director and longest-serving member of Trump’s team, Hope Hicks, resigned.
Since Hicks’ resignation, sources say Trump has acted as his own communications director. In March, Trump popped his head into the White House briefing room in a surprise appearance to tell the press the South Koreans would be making an announcement from the White House.
And just last week, Trump caught his staff off-guard with a tweet announcing he would likely appear on “Fox & Friends.” As he walked out, the press team could be seen running out to catch up with him.