The 31-year-old was being chased by a number of clubs from around Europe after Napoli made it clear that he could leave.
After days of talks, Inler has agreed to make the move to the King Power Stadium and is now due to in the Midlands to undergo a medical ahead of signing his contract.
Claudio Ranieri has been looking for a midfielder to step into the Esteban Cambiasso role, following the Argentine's decision to move to Olympiakos.
A source confirmed to Goal: "Inler has agreed the move. It is a big deal and Ranieri is hugely excited to get someone of his calibre."
Asked about Inler by reporters on Friday, Ranieri replied: "I want to speak about the finish when there is something concrete.
"The club are speaking to a lot of players. I want to wait and look what happens."
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