Hull City boss Steve Bruce is understood to be an admirer of the 20-year-old, who has seen his chances limited in the Manchester United first team since his £6million transfer from Crewe Alexandra in July 2012.
The Hull Daily Mail is reporting that the legendary United centre-back, now turned Hull manager, took a liking to Powell last season but was unable to push through any deal.
A loan deal could materialise this season though as it seems the new Red Devils boss Louis van Gaal may be keen on bolstering the midfield with foreign players, rather than promoting from within.
Spanish box-to-box midfielder Ander Herrera has already been brought in, and a deal for Chile's World Cup star Arturo Vidal could also soon come to fruition if reports are to be believed.
With Michael Carrick, Darren Fletcher, Tom Cleverley and Anderson all still vying for a place in midfield next season, Powell's chances of breaking through could be more limited than ever.
The young attacking midfielder will be desperate to build on the phenomenal campaign that he had in his season-long loan at Championship side Wigan Athletic last season.
In the 42 games that he appeared for the Latics he scored 12 goals, three of which came in the Europa League. Powell has also represented England in every age group up to the under-21s.
Hull could yet face competition for the attacking midfielder's services though as Swansea City are also said to also be showing an interest.
Although with Bruce's Old Trafford connections and the close proximity between the two cities, you would expect Hull to be in the driving seat for this deal.