HITC Sport understands Barnsley are closing in on top target.
Barnsley had identified Potts as one of their top transfer targets this summer as they look to strengthen their midfield options ahead of the new Championship season
Potts has impressed at Blackpool since joining the club from Carlisle United in the summer of 2015.
Brad Potts of Blackpool celebrates scoring against Exeter City
The 23-year-old was instrumental in helping Blackpool win promotion from League Two last season scoring one and creating the other in the 2-1 win over Exeter City at Wembley in the play-off final.
Potts scored 13 goals and contributed 12 assists last season for Blackpool to enhance his reputation as one of the best midfielders in the lower leagues.
Barnsley saw their opening offer in the region of £500,000 for Potts rejected by Blackpool at the start of the summer, but the Tykes have come back with an improved offer for the player.
Blackpool were reluctant to lose Potts as they prepared for life back in League One, but Barnsley have now met their asking price for the midfielder.
Barnsley are hopeful of tying up a deal for Potts in time for him to make his debut in this weekend's season opener at Bristol City.