Neil, Hamilton's player-manager since April 2013, was approached by the Championship club following the resignation of Neil Adams.
And Hamilton, who sit third in the Scottish Premiership, have now confirmed that Neil is free to join Norwich should personal terms be agreed.
A statement from Hamilton read: "The club can now confirm that agreement has been reached with Norwich City in connection with compensation for our player-manager Alex Neil.
"It is now a matter for Alex himself to confirm and agree with the Norfolk club.
"If indeed Alex goes, he departs with the very best wishes of everyone here, on and off the field, for his continued success."
Mike Phelan is currently in temporary charge of Norwich following Adams' resignation on Monday, which followed an FA Cup third-round exit to League One outfit Preston North End.
