The 25-year-old left-back joined Southampton in the summer of 2019 and has featured 60 times for the Saints since joining.
Perraud made 27 league appearances last season, but he has been tipped to leave St Mary’s this summer.
And following Southampton’s relegation, Perraud looks to now be heading back to his homeland.
The left-back has takers in the market in the form of Nice, who want to take him back to France.
And according to French outlet Foot Mercato, the Ligue 1 outfit have been operating with the utmost secrecy to wrap up the deal for the Southampton star.
It is suggested that Perraud is set to undergo a medical today with Nice before completing a loan move.
Nice also have an option to sign the defender on a permanent basis at the end of the stint and will hope to see him quickly impress in Ligue 1.