The move will officially go through when the transfer window opens for business in January, bringing the 34-year-old back to Turf Moor eight months after leaving.
Barton rejected the club’s offer of a new contract after playing a pivotal role in their promotion from the Championship last term, instead leaving as a free agent and joining Scottish Premiership side Rangers.
A training ground bust-up with teammate Andy Halliday brought a premature end to Barton’s two-year deal, however, with the Englishman since returning to Burnley to keep up his fitness.
Asked last week whether Barton would be offered a Premier League lifeline, Burnley boss Sean Dyche refused to give too much away but confirmed that he was still in his thoughts for the long term.
Burnley have now confirmed that Barton – voted their Player of the Year for 2015-16 – will join the club next month, subject to international clearance.
Barton has previously represented Manchester City, Newcastle and Queens Park Rangers at Premier League level.