2009 Lion Powell was released by Cardiff Blues in 2010 and accepted a one-year contract with the Aviva Premiership club.
He has flourished since making the move to Adam's Park and earned a recall to the Wales RBS 6 Nations squad.
"I'm going to sign another two years this week, so hopefully it will all be done and dusted," said 29-year-old Powell.
"I'm happy with the club and hopefully will now put pen to paper.
"They have good people around the club and, especially with the individuals they have got there, it's a real friendly place.
"I'm definitely looking forward to it."
Powell is hoping to be included in Wales' 22-man squad for the penultimate Six Nations clash against Ireland at the Millennium Stadium on March 12 after recovering from the shoulder injury he picked up against England.
Powell made his comeback against Saracens last Saturday and will be aiming to catch Warren Gatland's eye against Sale Sharks this weekend.