Vaughan is available on a free transfer after leaving Blackpool following the expiration of his contract earlier this summer.
The 28-year-old was one of Blackpool's top performers last season and his performances alerted a number of clubs to his availability.
West Brom were thought to be leading the chase for the Welsh international, but the Baggies have stalled on a deal allowing Sunderland to nip in and pinch the midfielder.
Vaughan is set for talks and a medical at the Stadium of Light in the next 24 hours as Steve Bruce looks to secure his signature.
Sunderland have been busy in the transfer market this summer and they hope to tie up a deal for Vaughan and Manchester United pair Wes Brown and John O'Shea before the end of the week.