Steele, 27, joined Sunderland from Blackburn Rovers last summer after being relegated to League One with the Lancashire club, with Simon Grayson pouncing to land the former England youth international.
The shot-stopper was expected to start regularly for the Black Cats but ended up struggling and losing his place to Robbin Ruiter, and made just six league appearances in 2018.
Sunderland fans have mocked Steele over the last year for his errors and lack of command of his penalty area, and yet he may now be on the verge of a shock Premier League move.
The Sunderland Echo report that Steele is in talks with an unnamed Premier League club, with a deal agreed between the two clubs just a year after Steele penned a four-year deal at the Stadium of Light.
Steele heading to the Premier League would be a huge shock for many Sunderland fans who weren't even expecting him to feature for them in League One, but he looks set to be a backup somewhere.
It's still unclear who the team involved is, but The Argus report that Brighton and Hove Albion are interested, and that may make them the natural destination for a goalkeeper unlikely to garner too much top-flight interest.
The Seagulls do have Australian star Mat Ryan in goal, but having allowed Tim Krul to leave, Steele could come in as cover and allow Christian Walton to go out on loan, potentially explaining what looks like a strange move from Chris Hughton.