Tigers manager Steve Bruce confirms that his side have agreed personal terms with the striker, who has also passed a medical and now awaits a decision on a work permit
As revealed by Goal on Wednesday, Bruce turned his attention to the Uruguay international after Blackburn rebuffed the Premier League side's offers for Jordan Rhodes.
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"The medical is okay and the personal terms, we just have to iron out one or two issues.
"He has a work permit appeal on Friday and we will see how we get on."
The Tigers have also been linked with Manchester United midfielder Tom Cleverley, who is also reportedly a target for Everton, Aston Villa and Valencia, as well as West Ham's Mohamed Diame but Bruce stated after watching his side lose on away goals to Lokeren that his transfer plans would not be affected by their early European exit.
"Always our focus is on the Premier League and you have to build a squad for that, whether we were going through in Europe or not," he added.