Lt Gen Sharon Nesmith is one of four high-profile defence chiefs in line for the job, including two former SAS soldiers.
Sir Patrick Sanders last week told close friends he could now "look myself square in the mirror" after his decision to end his four-year tenure just 12 months in because of increasing frustration over cuts.
He is said to be furious the Army's size has been reduced to a 300-year low, with long-promised updated equipment either delayed or beset by technical difficulties.
The 57-year-old had already made his decision when, last week, he launched a scathing attack on the state of armoured vehicles and tanks, likening equipment to "rotary dial telephones in an iPhone age".
Gen Sir Patrick is expected to step down in January and four generals are being considered to replace him in the £145,000-a-year role, which also brings a knight or Damehood.
Mother-of-two Lt Gen Sharon, a Royal Signals officer, is married to a tree surgeon and is considered at Army HQ to be "switched on". She has served as deputy chief of the general staff and commanded a signals HQ in Iraq although she is viewed by many as not possessing the "combat edge" of her rivals.
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