The KV Racing team co-owned by Jimmy Vassar and Kevin Kalkhoven is said by Speed.com
to have the deal "all but signed, sealed and delivered."
"I don't think it's any secret we'd love to have Tony and we've been working hard to make it a reality but it's still a work in progress," insisted KV Racing general manager Mark Johnson on Thursday.
Kanaan's had a turbulent winter, first being let go by his former team Andretti Autosports after his primary sponsor 7-11 pulled out of backing the team, and then seeing a deal to drive for de Ferran Dragon Racing collapse after the team folded for lack of sufficient team sponsorship.
It's understood that Kanaan also been talking with Rahal Letterman Lanigan Racing and Dreyer & Reinbold Racing but that the KV Racing deal is now the front-runner.
If the deal does go through, KV Racing would be operating a three car squad as Takuma Sato and EJ Viso are already confirmed to return to the team in 2011. However, both drivers had a rather accident prone season last year, and Kanaan's experience and proven race-finishing abilities could be just what the team requires to move to the "next level". KV Racing may also run a fourth car for the Indianapolis 500 in May.
The odds seem to be that both Kanaan and Bourdais will be lining up on the grid for the first race of the 2011 IZOD IndyCar Series, on March 27 on the streets of St Petersburg in Florida.