The Mackems are closing in on signing Cole, who was a target of Manchester Unitedthis week.
The deal is expected to be completed before the end of the week.
Reports claimed yesterday the out-of-contract forward had passed a medical on Wearside and, while they were quickly acknowledged to be premature, the 35-year-old is close to becoming a Black Cats player.
A lack of match practice will make Cole's chance of facing Liverpool on Saturday minimal, but his impending arrival raises the possibility of him partnering fellow summer signing Michael Chopra against their former club in November's Tyne-Wear derby.
Manager Roy Keane has been quite open about his interest in his former Manchester United team-mate, who was in the crowd when the Black Cats were beaten 3-0 at the JJB Stadium on Saturday.
Having been released by Portsmouth this summer, Cole could in theory sign after the August transfer window closes at midnight a week tomorrow, but his need for fitness and Sunderland's need for an established goal-getter means all parties will be keen to wrap up a deal sooner rather than later.
1993/95 A.A.Cole 83/1 68
Signed from Bristol City and took the place by storm with his powerful running, superb finishing, and uncanny partnership with Peter Beardsley.
Left under a cloud when he was sold to Manchester United and said he was joining a better club.
OK, perhaps he was, but we didn't want to hear it.
Born in Nottingham.
Later played for Blackburn and Fulham.