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Richard Cockerill, the Tigers coach, didn't hide his satisfaction at finally getting the Leicester product to stay in the East Midlands.
Cole, who made his England debut in 2010, has become a mainstay of the England and Tigers pack over the last season.
"We have agreed terms on three years and the detail is just being bashed out with Simon Cohen (Leicester's chief operating officer) and Dan's agent and solicitors to make sure all of the fine detail is in place as it should be," said Cockerill.
"Dan is born-and-bred in the city and has come through our academy. He is 24 and I have coached him for eight years. I know him very well. He wants to play for this club. He doesn't want to play for another club.
"We have done everything we can to try to keep him for all of the right reasons. Firstly he is a world-class player and secondly there is no point in producing these players if you let them go in their prime."
