Kanu (22) has just returned from the Africa Cup of Nations in Cameroon where he was an unused member of the Sierra Leone squad. The move to Cobblers would be on loan.
Kanu has travelled to the promotion-seeking League Two club today (January 24) and Posh are open to selling or loaning him.
Kanu, who can play in multiple positions, has made 69 appearances for Posh (48 of them as a substitute) since moving to London Road from Aldershot as a 16 year-old in August 2017.
Kanu has started one game for Posh this season, the 3-0 Championship defeat at Swansea City in October.
He scored his first Posh goal in an EFL Trophy win at Northampton in September, 2019. He scored his first Football League goal for the club during a 7-0 win over Accrington Stanley last season before scoring again in a 4-1 win at Doncaster Rovers in the final match of the campaign.
Kanu has previously been on loan at Boreham Wood and Port Vale.