However, he will go back to Frankfurt, the club from where he moved to Madrid in 2019.
Frankfurt sporting director Fredi Bobic confirmed the talks on Tuesday night, telling Sky of Jovic: "If everything works out, he will be with us again soon."
Bobic said only details like the medical are to be done ahead of the official confirmation. The loan will be until the end of the season, but Bobic also did not rule out a purchase option for Jovic.
He said: "We will see next summer. We can still think about everything what will happen in the summer."
Jovic is not part of manager Zinedine Zidane's plans, and while Goal has learned that he is not happy about being forced out of Madrid and feels he can still prove himself and work his way into the first-team picture, the boss is set on getting rid of the Serbian and has no interest in keeping him even as a squad back-up option.
Injuries, off-field problems and a lack of opportunities have hampered Jovic at Real, and his time with the club looks to be over - at least until the end of the season.
Having joined Real Madrid in the summer of 2019, Jovic made only eight starts and played just 806 minutes in total during the 2019-20 campaign, scoring a meagre two goals and assisting twice more.
The 2020-21 campaign has scarcely gone any better, the forward making only three starts and playing a total of just 208 minutes. He has not scored nor created an assist this season.
Goal can confirm that Real only want to loan Jovic out and are not interested in a permanent sale at this point, giving some hope that he could have a successful career at Santiago Bernabeu at some point. For now, though, this looks unlikely.
He joined Real in a €60 million (£53.5m/$73m) deal but has not come close to justifying that investment. A strong showing on loan, however, could allow Real to recoup a large amount of that fee should they sell him in the summer.
Jovic will be going back to Germany with Frankfurt, the club where he caught the eye between 2017 and 2019 and earned his move to Madrid. He scored 36 goals in 75 appearances in all competitions, again during a loan spell, on that occasion from Benfica over two years.