Powell apparently wants to discuss with the BJP's Prime Ministerial candidate issues related to the upcoming Lok Sabha polls and his vision for the country, sources said.
They said the Ambassador's request for meeting has been accepted by Modi and exact time and date are being firmed up.
"Most likely, the meeting will take place on Thursday February 13," a source said.
The development marks a major shift in US stand towards Modi as it has so far refused to have any contact with him because of the 2002 Gujarat riots. The US has also continuously refused to give visa to him since 2005.
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That interaction apparently set the stage for the meeting between Powell and 63-year-old Modi.
In Washington, a US State Department spokesman told PTI, "We can confirm the appointment (between Modi and Powell)."
"This is part of our concerted outreach to senior political and business leaders which began in November to highlight the US-India relationship," the spokesperson said.
The go ahead, just before the announcement of general elections in a few weeks from now, seems to have been taken after intensive debate within the various wings of the Obama Administration -- the White House and the State Department in particular -- with crucial inputs from the members of the Congress, and the influential leaders of the corporate sector, the US India Business Council in particular.