HITC Sport understands that Preston North End are prepared to sanction a loan move for the winger.
Reid has seen his chances become limited at current employers Preston North End this season, and Deepdale boss Simon Grayson has agreed to let him leave on loan.
Grayson has already signed Middlesbrough's Adam Reach on loan, which has smoothed the way for Reid's departure.
A number of clubs had shown an interest in the former West Ham United winger, but he has opted for a return to Valley Parade.
Reid spent three years with Bradford between 2011 and 2014, playing over 100 games for The Bantams before joining Preston last year.
The 27-year-old was Phil Parkinson’s first signing as Bantams boss upon him inheriting the reins, and formed part of the squad which defied the odds to reach the 2013 League Cup final against Swansea City – although he was to be an unused substitute on the day at Wembley.