Boucaud spent five months on loan at Meadow Lane after being told by the Hatters that he had no future at the Blue Square Bet Premier club.
The 28-year-old midfielder made 23 appearances for the Magpies, the last of which came in the 2-1 defeat to MK Dons on New Year's Day, and manager Keith Curle has made no secret of the fact he would like to sign Boucaud.
The two clubs have been in negotiations for the past week and have finally reached an agreement, with the player now set to discuss personal terms.
Curle will hope the deal can be completed in time for his side's npower League One fixture at Portsmouth on Saturday.
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