The versatile 24-year-old, who ended last season in midfield, has proved a revelation at the Galpharm Stadium since signing from Yeovil for a small fee in the summer of 2009, making a total of 103 appearances in his two seasons with the club.
Following Town's play-off final defeat last month, Peltier now looks set for second-tier football with Leicester, subject to a medical and agreeing personal terms, where he will be reunited with former Terriers first-team coach Derek Fazackerley, who is now assistant to Sven-Goran Eriksson.
Huddersfield manager Lee Clark told the club's official website: "I've just spoken to Lee and wished him the best of luck. He has been fantastic for me and I think he is a Premier League footballer in the making."
Chairman Dean Hoyle added: "Of course we are disappointed to be losing a player of his quality but that is the nature of football and Leicester matched our valuation for Lee. As one player departs, it creates opportunities for others to shine."