The Frenchman looks set to join the Championship side today.
Knockaert left The Foxes in the summer after his contract at the King Power Stadium had come to an end.
The former French Under-21 international signed for Standard Liege in the summer and has scored five goals in 18 Belgian Pro League appearances for the club.
It is being reported this morning that this deal is indeed a goer and should be confirmed later today.
French publication L'Equipe is stating that Brighton have agreed a transfer fee for the 24-year-old - who featured 106 times for Leicester, scoring 16 times, in three seasons in the East Midlands.
That fee, according to the report in France, is set to be in the region of €3 million (£2.2 million) and would see Knockaert arrive on a permanent deal from the Belgian side.
Brighton are looking for reinforcements in order to keep the pace in their promotion tilt this season - which has recently gone off of track.