Kevin Gallen is set to join former manager Ian Holloway at Plymouth Argyle.
The Queens Park Rangers striker has found first-team opportunities hard to come by since the arrival of John Gregory at Loftus Road in September.
Gallen's contract at Rangers is due to expire at the end of the season and he is being allowed to leave for Championship rivals Plymouth.
The 31-year-old is expected to agree a deal until the end of the season with The Pilgrims.
Meanwhile, Plymouth midfielder Luke Summerfield has signed a one-year contract extension at Home Park.
The 19-year-old has broken through to become a regular at first team level and has been rewarded with fresh terms through to 2008.
Plymouth have also confirmed that talks with defender Tony Capaldi over a new deal have been 'very positive'.
The Northern Ireland international is out of contract in the summer but club chief executive Michael Dunford is hopeful he will sign an extension.
"We have been negotiating now with the player and his agent for more than two months," Dunford told the club's official website.
"The most recent round of negotiations we had was this weekend and we left those discussions feeling very positive, although, in football, you never know what's round the corner."
Dunford also confirmed that he expects The Football Association to open an inquiry into the crowd trouble at Peterborough.
Hasney Aljofree's celebration after his goal in the FA Cup third round tie angered Posh fans, resulting in missiles being thrown, and Dunford expects The FA to take a look at the incident.
"I would imagine, given the incident and the publicity it has received subsequently, that the FA will at least write to Hasney and ask him for his observations on the incident," Dunford said.