Town boss Mick McCarthy is eager to finalise a deal in January for Higginbotham, despite not using him for five weeks.
"I spoke to Tony Pulis [Stoke manager]. He's happy to do that and Danny is as well. So we just need to tie that up," he told BBC Radio Suffolk.
"Danny started well against Birmingham [McCarthy's first game in charge]. And by his own admission didn't play as well in a couple of the other games and I made a change," said the former Wolves boss.
"I was looking at other players and Chambo and Tommy have been excellent together. So he's been pushed down the pecking order.
"But he's alright, he wants to fight for his place and I imagine we'll keep him for the rest of the season."