The 25-year-old Ecuador international is close to sealing a return to the city where he spent the 2010-11 season, with Levante
The Ecuador international will be returning to the city where he previously spent a successful season in 2010-11 - with Los Che's crosstown rivals Levante.
"I have several offers but I'm decided to join Valencia," the 25-year-old told Cadena SER. "It's my only option and I want to get there as soon as possible.
"The deal between Valencia and my agent is already done and the only thing left is the official offer to sign me. My priority is to play for Valencia the next six months and stay for the next few seasons."
According to Cadena SER, Caicedo, who has also played for Basel, Manchester City, Sporting Lisbon and Malaga, has agreed to a 40 per cent reduction of his salary during the six-month deal and the fee is likely to be in the region of €4.5 million.
Valencia, who sold Roberto Soldado to Tottenham in the summer for €30m, are keen to recruit a forward to ease the pressure on Helder Postiga, who has scored only three times in La Liga this term.