It is understood that the 27-year old is about to be released by North Queensland where he will then immediately sign with South Sydney.
A member of the Cowboys' 2015 premiership side, Lowe struggled through form woes last season to play 15 first-grade games.
The backrower made his NRL debut for North Queensland in 201 and has totalled 108 games. Lowe would become Wayne Bennett's first recruit since taking over the top job at South Sydney.
Lowe's departure will help free up the necessary salary for the Cowboys to sign Bronco Jordan Kahu as Ben Barba's replacement.
North Queensland half Jake Clifford said Kahu would fit the club's needs.
“I haven’t heard too much about it but he’s a very good player and if he does come to the club, he’s going to be a another good addition and he’ll be pushing for that fullback spot if he does come,” he told the Daily Telegraph.
“If we do go on the market and buy someone, they’re going to buy someone that fits into our structure of play.”