The 30-year-old midfielder, who has been without a club since departing Portsmouth last month, has been training with the club for the past 10 days.
City head coach Sean O'Driscoll is now poised to offer the former Reading man terms.
"He's got Championship experience and is technically very good," O'Driscoll told the club's official website. "His personality would add something positive to the group.
"He's got offers from two other clubs so we have to make our move."
Howard could join up with the squad for Saturday's npower Championship match at Cardiff if a deal is sealed.