The Scotland international will complete the move on Tuesday if he passes a medical.
Mallorca, who are 19th in the 20-team Primera Liga with only four wins this season, will also retain an option to agree a permanent transfer in the summer.
Hutton started his career with Rangers before moving to Tottenham for £9m in January 2008.
He then joined Aston Villa in August 2011 but has not featured under Paul Lambert this season.
The 28-year-old was loaned out to Nottingham Forest in November and played seven games for the Championship side.
Hutton is keen on the move to Spain as he wants to be playing regular first-team football to safeguard his place in the Scotland squad.