The deal is expected to be finalized at some point this week.
The 21-year-old was selected with the second overall pick in the 2012 NBA Draft out of the University of Kentucky, earning himself a spot on the All-Rookie Second Team during his inaugural campaign.
In 195 career appearances, the former NCAA Champion has averaged nine points, 6.1 rebounds, and 1.3 assists in 26.2 minutes per game.
His third year in the league was his strongest to date, putting up 10.9 points and 7.6 boards in 55 outings, missing stretches during the season with injuries to his foot and ankle.
The Hornets acquired Nicolas Batum in a trade with the Portland Trail Blazers this offseason, which raises the question of how head coach Steve Clifford will allocate minutes at small forward - a position where Kidd-Gilchrist accumulated 94 percent of his minutes.
While perimeter defense is his bread and butter, Kidd-Gilchrist has taken tremendous strides in adding a mid-range game to his repertoire as he looks to become a more well-rounded player. He's working on extending his range even further, adding consistency with a corner three.