The 28-year-old midfielder is available on a Bosman transfer as his contract with Crystal Palace is set to expire and he has decided to leave Selhurst Park.
A host of clubs have been chasing the former Blackburn and Birmingham man, with both of the Old Firm, Celtic and Rangers, holding talks.
Interest in England has been strong with the likes of Bolton, Hull City and Southampton all understood to have made moves for him.
But Eriksson looks to have persuaded Danns that his future is best served at the Walkers Stadium.
Danns is now due in the East Midlands to undergo a medical ahead of completing a deal with the Championship club.
Source: Team Talk
Source: Team Talk