The 22-year-old has just returned to England from a trip to the Africa Cup of Nations in Cameroon, where he was an unused member of the Sierra Leone squad.
The Peterborough Telegraph is reporting that the London-born player is in Northampton for talks today, and says Posh are open to Kanu joining Town on loan, or permanently.
The Cobblers, who are keen to add to their squad in attacking areas, are making no comment.
Kanu, who can play as a main striker, a winger or as a wing-back, has made 21 starts for Posh in his four-and-a-half years at London Road, as well as 48 substitute appearances.
He signed for Borough from Aldershot when he was just 16-years-old in August, 2017.
Kanu has previously been sent out on loan to Boreham Wood in the National League and Port Vale in Sky Bet League Two in the 2018-19 season.
In his five-month stint with the Valiants, he made three starts and four substitute appearances, scoring once, while at Boreham Wood he netted four times in 18 appearances.
This season, Kanu has made one start and five substitute appearances for relegation-haunted Posh, with his most recent run out as an 84th-minute substitute in a 1-0 defeat to Fulham on November 6.
His one start came in a 3-0 Championship defeat at Swansea City in October.
Kanu does have happy memories of Sixfields though, as he scored his first Posh goal at the stadium in a 2-0 EFL Trophy win over the Cobblers in September, 2019.
He has also scored twice in the EFL for Borough, both in league one encounters last season.
In all, Kanu has scored 11 goals in 62 starts and 63 substitute appearances across all competitions.