It is understood Caley Thiste will hold a press conference on Wednesday when they will unveil Hughes.
The 49-year-old will replace Terry Butcher, who departed last month to take over at Hibernian.
Hughes won plaudits for building a successful team at Falkirk during his six years at the club, before he left in 2009 to manage his boyhood favourites Hibs.
His move to Easter Road did not work out though and Hughes left Hibs just over a year later, despite a fourth place finish the previous season.
Following a short spell at Livingston Hughes moved to struggling Hartlepool, but he was dismissed at the end of last season after they were relegated to League Two.
Hughes arrives at Inverness with the team currently sitting second in the Scottish Premiership.
His first match in charge of Thistle will be against St Mirren this weekend, with another away trip to Hearts to follow that.