The 28-year-old will depart The Hawthorns after completing the academy and is scheduled to have a medical at Portman Road before to the transfer deadline.
Ipswich is reportedly paying up to £5 million in total, while several sources are arguing over the precise amount.
Palmer has played 104 games for West Brom, who are currently sixth in the Championship.
The Baggies decided to let him go because they think Josh Griffiths, Joe Wildsmith, and Ben Cisse, an England Under-19 player, are a good succession plan.
Palmer will fill in for Christian Walton, who will be out for several weeks due to a groin injury, and the Tractor Boys have no intentions to move any other goalkeepers.
