Carayol is currently down the pecking order in Aitor Karanka's Middlesbrough side and has yet to feature this season.
A number of clubs have expressed an interest in taking the Gambian on loan, but Huddersfield have moved quickly to agree a deal to bring him to the John Smith's Stadium – with HITC bringing you that news earlier on Thursday.
Huddersfield boss Chris Powell is looking to bolster his attacking options and he sees Carayol as someone who will provide goals and assists to his side.
Carayol joined Middlesbrough from Bristol Rovers three years ago and was a key member of the side before suffering a serious knee injury in March 2014.
The 27-year-old was ruled out of action for a year and when he returned to fitness he joined Brighton & Hove Albion at the back end of last season in a bid to regain fitness.
Carayol signed a new deal at Middlesbrough in April until 2017 but, with his first-team chances set to be limited, they are happy for him to go out on loan in order to get regular game time under his belt.