The Sunday Mirror says Pearson is set to be installed as Leicester City's new manager inside the next 48 hours.
The Foxes swoop for Hull's manager hit the buffers last week because of a row over compensation between the two Championship rivals.
But talks have re-opened over the weekend, paving the way for Pearson, 49, to finally seal his return to the King Power Stadium after 17 months in Hull.
Disappointed Tigers chairman Assam Allam had demanded £1.2million in compensation for losing his manager, who still has 19 months left on his deal with the Humberside club.
But now the two parties have agreed a smaller sum, leaving Pearson free to take up a double-your-money deal with his former club.