The former Manchester United midfielder spent the second half of last season at Hull, but now looks to be Wolves bound.
Hull boss Steve Bruce
Powell spent the second half of last season on loan at the KC Stadium from Manchester United, who released him at the end of the campaign.
However, the former Crewe Alexandra prospect, who was viewed as Paul Scholes' long-term successor at the time of his 2012 move to Old Trafford, now seems bound for Wolves - despite a meeting with Tigers boss Bruce on Wednesday.
Powell (L) scores on his Manchester United debut
"We're disappointed as it looks like we've missed out on Nick Powell - you'll have to ask Ehab (Allam the Hull vice-chairman) why (it hasn't happened)," Bruce told BBC Radio Humberside.
"It looks like we've lost out to Wolves.
"I spoke to Nick last week and he insinuated to me that he would want to come back ... he's obviously chose Wolves."
Powell's transfer does not appear to be dependent on a proposed takeover of Wolves by Chinese billionaire Robin Li, as reported by the Express & Star last week.
If the deal goes through, the 22-year-old will become the Championship club's second summer arrival after Fulham goalkeeper Andy Lonergan.
Lonergan is Wolves' first summer signing
As one midfielder arrives, another could be on his way out of Molineux after manager Kenny Jackett admitted the club had received interest in Kevin McDonald (Express & Star).