HITC Sport understands Birmingham City are set to sign the former Everton starlet on loan.
Birmingham boss Gary Rowett is looking to bring in a new forward before the loan window closes after losing Clayton Donaldson to injury, and has identified Vaughan as his top target.
Vaughan was left out of new Huddersfield boss David Wagner's squad for his first game in charge against Sheffield Wednesday last weekend.
Wagner is thought to be willing to let Vaughan go out on loan so that he can build up his fitness by playing regular first-team football.
Vaughan came through the ranks at Everton and spent seven seasons at the club before joining Norwich City in 2011.
The 27-year-old joined Huddersfield initially on loan in the summer of 2012 before the move was made permanent the following season.
Vaughan has scored 33 goals for Huddersfield and the former England Under-21 international is a proven striker in the Championship.
Birmingham boss Gary Rowett will be hoping Vaughan can fill the void left by Donaldson's injury during his spell at St Andrew's, as the Blues look to maintain their push for promotion.
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