Rovers made an official approach to their npower Championship counterparts on Wednesday night and former Portsmouth boss Appleton, who only took the reins at Bloomfield Road on November 7, now appears set to succeed Henning Berg.
Blackpool first-team coach Ashley Westwood will also discuss terms with Rovers.
A statement on Blackpool's official website read: "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."
Blackburn confirmed they had been granted permission to talk to Appleton and Westwood and would hold discussions on Friday.
A statement on the club website, www.rovers.co.uk, read: "Following lengthy discussions with Blackpool chairman Karl Oyston, Blackburn Rovers can confirm that the club has been granted permission to speak to Michael Appleton and Ashley Westwood about the vacant manager's position at Ewood Park. Talks will take place tomorrow (Friday)."
Following widespread reports this morning that Blackpool had rejected the initial approach for Appleton, Blackburn managing director Derek Shaw revealed that the two clubs remained "in discussions".
Appleton's scheduled 12:30pm press briefing at Pool's Squires Gate training ground was cancelled and assistant manager Steve Thompson took first-team training in his absence.
Blackburn caretaker manager Gary Bowyer told his own press conference that he expects to remain in charge for Friday night's televised clash with Wolves at Molineux.
Reserve-team boss Bowyer and Rovers' head of youth Terry McPhillips have overseen three consecutive wins since Berg was sacked on December 27, following one win in 10 matches as Steve Kean's replacement.
Last week Blackburn issued a statement to confirm the duo would remain in charge until the end of January but Bowyer fully understands the altered circumstances.
He said: "As far as we're aware we were told we had it until the end of January but, like I stressed last week when that announcement was made, we understand that anything can happen in that month.
"That seems to be what's happened at the moment. The club have made an approach and it's an official approach.
"To be perfectly honest, it's nothing to do with me. It's a board matter. I think it would be wrong of me to comment on a manager at another football club.
"Until we're told otherwise we'll continue to do what we've done and that's prepare the players for the game tomorrow."
Appleton has won two and drawn seven of his 11 Championship games in charge of Blackpool having taken over on the back of Ian Holloway's departure to Crystal Palace.
The Seasiders lie 14th in the table and six points shy of the play-offs - one point and one place behind Rovers.
Blackburn's outspoken global advisor Shebby Singh appears to have been marginalised during the pursuit of Appleton, with last night's official statement attributed to Shaw following a widely reported breakdown in relations between the two in the wake of Berg's sacking.
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