Powell famously joined Manchester United from Crewe Alexandra in 2012, but made just three Premier League appearances in four years with the 20-time English champions.
The midfielder scored seven league goals in 31 appearances for Wigan during a loan spell before joining the Latics on a permanent contract in July 2016 - signing a three-year contract with the club.
The 23-year-old has scored 11 times in 24 League One appearances for Wigan this term, and Brighton are believed to have made a £3m bid for the Englishman on Wednesday morning.
According to Wigan Today, however, Wigan rejected what was Brighton's second offer as they bid to hold on to Powell.
Bournemouth, Crystal Palace and Swansea City are also said to be closely monitoring developments ahead of the close of the winter window on Wednesday night.