Chilwell, who has come through the ranks at Leicester, is regarded as one of the best young prospects in the country after impressing for Leicester's youth sides.
The left-back is a regular in Leicester’s under-21 team and he was handed his senior debut in the Capital One Cup against Hull City last month.
A number of the Premier League's big guns have been linked with a move for Chilwell, with the likes of Manchester United and Arsenal keeping tabs on his situation at the King Power Stadium according to the Daily Mail.
Leicester have high hopes that Chilwell will soon break into the first-team and establish himself in the side, but they feel he would be best served by going out on loan to get some valuable first-team experience under his belt.
A number of Football League clubs have expressed an interest in Chilwell, but Huddersfield have moved quickly to land the defender as they look to add to their left-back options.
Chilwell will become new Huddersfield head coach David Wagner's first signing since replacing Chris Powell at the John Smith's Stadium.