Cole has started just nine Premier League games since he swapped Chelsea for Liverpool in the summer of 2010.
The midfielder has played the majority of his games with the Reds in cup competitions and was sent out on loan to Lille last term.
Reds boss Brendan Rodgers deemed the 31-year-old surplus to requirements when he took over last summer and Cole is keen to go back to Upton Park, where he began his career back in 1994.
Cole will have a medical at West Ham on Thursday and the London club hope to have him registered before midday on Friday so that he can play in Saturday's FA Cup clash against Manchester United.
West Ham will not pay a transfer fee for the England international as Liverpool are prepared to cancel his contract.
The Merseyside club would also pay him a negotiated settlement in order to get his estimated £100,000-a-week salary off the wage bill.
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