The 29-year-old has a clause in his contract allowing him to leave Blackburn following their relegation from the Premier League.
According to The Mirror, Yakubu is expected to fly out to China on Tuesday to finalise personal terms for the move, with a contract believed to be worth €6.2million per season.
Guangzhou, who were promoted to the Chinese Super League (CSL) this season, confirmed to reporters that they are eager to seal a move for the Nigerian, who scored 17 goals in the Premier League last term.
“Yakubu is our first choice, and everything is going well now, we hope he will be in Guangzhou this weekend,” the club's deputy director Lu Yi told local media.
Fuli, who recently rubbished a rumour linking them with Ronaldinho, are currently third in the CSL, five points behind leaders and city rivals Evergrande, 13 games into the 2012 season.
China's mid-season transfer window opened on Monday, with Didier Drogba another big name linked with a CSL club, Shanghai Shenhua.
Paraguay international Lucas Barrios recently joined Guangzhou Evergrande, while Nicolas Anelka signed with Shanghai Shenhua last December.