The 32-year-old, who was released by Manchester United in the summer, will join Tony Pulis' side subject to approval from the Premier League.
The striker moved to Old Trafford back in 2009 as Sir Alex Ferguson looked to bolster his attacking options following Cristiano Ronaldo’s £80 million move to Real Madrid.
Despite netting a dramatic winner in the Red Devils' 4-3 win over local rivals Manchester City, he failed to establish himself at the club and made just 31 league appearances, scoring five times.
|STOKE TO DENT CITY TITLE HOPES?|
|14/1||Stoke are 14/1 with Bet365 to beat Manchester City 2-1|
Speculation over recent days suggested a return to Liverpool could happen but the Potters have completed a deal to bring him to the Britannia Stadium.
Owen has scored 40 times for England in 89 appearances but has failed to represent his country in recent years.
The ex-Real Madrid man will provide competition upfront for Peter Crouch, Jon Walters and Cameron Jerome.