The midfielder has flown back from Bolton Wanderers' pre-season tour of the USA to finalise the switch, according to Sky Sports News.
The deal is reported to be in the region of £2.2m and manager Owen Coyle believes it is good for both parties.
"Matty will feel it's a good deal for him and we feel it's a good deal for the football club," he told the Bolton News.
"Matty Taylor is a great lad. I've got so much time for him and he goes with our best wishes."
The 29-year-old moved to the Reebok Stadium in 2008 from Portsmouth for an undisclosed fee.