A £2 million fee is in place and Nugent is due to discuss personal terms with the club.
He did not feature in Leicester's Premier League opener, and does not figure in new manager Claudio Ranieri's plans.
He made 29 appearances for the Foxes in 2014/15, scoring five goals.
The 30-year-old is a former England international, establishing himself at Preston North End before moving to Portsmouth. He has been at Leicester since 2011.
Nugent has a proven track record of doing just that, helping Leicester win promotion in 2013/14, scoring 20 Championship goals in 46 games.
The fee is a potential bargain in comparison to Jordan Rhodes of Blackburn, with The Star claiming Middlesbrough had an astonishing £13 million bid rejected for the former Huddersfield Town forward.