Bullard, 32, is keen to be reunited with his former Wigan boss Paul Jewell, who took charge at Portman Road a fortnight ago.
On the move: Hull midfielder Bullard is set to join Jewell at Ipswich
The two clubs are close to thrashing out a deal as to how much of the player's £45,000-a-week wages Ipswich will have to pay.
Bullard, who launched his career as a youngster at West Ham without making a first-team appearance, became Hull's record signing when he moved from Fulham in a £5 million deal two years ago.
To Hull and back: Bullard has endured a frustrating time with the Tigers
But on his Tigers' debut he suffered a cruciate ligament injury, just as he had done in his time at Craven Cottage, and did not play again in the Premier League until nine months later.
The East Ham-born player was called into the England squad in August 2008 for the World Cup qualifiers against Andorra and Croatia but despite three more call-ups by Fabio Capello since then he remains uncapped.
Jewell paid Peterborough £275,000 for Bullard eight years ago and within five months Wigan were crowed Second Division champions and promoted to the Premier League, the club's first time in the top tier of English football.
Ipswich, who have won just two of their last 11 league games, see Bullard as someone who can help them climb away from the Championship relegation area.
Jewell is also set to pay Luton £150,000 for midfielder Andy Drury, 27, who has scored eight goals in 25 games since joining the Hatters from Stevenage last summer.
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Explore more:People: Jimmy Bullard, Fabio Capello, Paul Jewell Places: United Kingdom, Andorra, Croatia
Source: Daily Mail