The England skipper, currently playing in the Stanford Super Series, just needs the green light from the English cricket board.
English cricket"s governing body had hoped the lure of 600,000 pound for winning in Antigua would see players resist the call of Twenty20 in the sub-continent, The Sun reported.
But now IPL chief Lalit Modi has revealed an agreement has been struck which will see Pietersen feature early next season.
He said: “I am very keen for Kevin to take part in the IPL. He has already agreed to be part of it, we just need a non-objection certificate from the ECB."
The England board is unlikely to pull the deal, having said players will be available for 14 days of next season"s IPL.
That clearance comes with the provision that 20 IPL stars will free to play in the ECB"s proposed Twenty20 league in 2010.