Appleton, who was only appointed at Bloomfield Road in November, was granted permission to talk to Ewood Park chiefs on Thursday evening.
He is expected to be confirmed as Henning Berg's successor within 24 hours and will watch his new players take on Wolves in front of the Sky cameras on Friday night.
Rovers had axed Berg last month after just 10 games in charge but a search by global advisor, Shebby Singh soon settled on Lancashire neighbours Blackpool.
Appleton is thought to have been keen to leave and missed training on Thursday morning after an intial approach for his services was rejected.
But after talks with Blackpool chairman Karl Oyston on Thursday afternoon, the 37-year-old, along with coach Ashley Westwood, was given permission to meet Blackburn chiefs.
Blackpool confirmed that development on their official website, saying: "Blackpool FC can confirm that following discussions with Blackburn Rovers and Michael Appleton, permission has been granted for the manager and Ashley Westwood to discuss personal terms with the club."
Appleton has won two and drawn seven of his 11 Championship games in charge of Blackpool, who lie 14th in the standings - six points shy of the play-offs - and are one point and one place behind Blackburn.
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