Hughton will succeed Paul Lambert at Carrow Road after guiding Blues into the play-offs despite off-field distractions and a hectic fixture schedule.
His assistant, former Nottingham Forest manager, Colin Calderwood is expected to join Hughton at Carrow Road.
While Birmingham now have a managerial vacancy one of their former bosses, Steve Bruce, is set to be the new man in charge at Hull City.
Bruce's appointment will end speculation that another ex-Forest man, Billy Davies, was in line to take over from Nick Barmby at the KC Stadium.