Dutch paper De Telegraaf mentioned few days ago that the towering striker had been approached by Spanish duo Deportivo and Espanyol.
According to the report, both offers weren't 'financially attractive'.
However, a reliable source, who spoke on condition of anonymity, said Mido is poised to sign for Deportivo on a permanent basis.
"Deportivo lodged a bid that appeals to Mido and Ajax as well," he told FilGoal.com.
"The deal is expected to go through within few days. The player should sign a two-and-a-half year contract."
Mido, who turns 28 next month, has been moving from one European club to another since 2000.
Among other sides, he plied his trade at Gent, Marseille, AS Roma, Tottenham Hotspur and Middlesbrough.
Mido spent a brief six-month spell in the Spanish league when he joined Celta Vigo in the winter of 2003 on loan from Ajax, the club he rejoined on loan from Boro last summer.
The former Zamalek prodigy made a handful of appearances for Ajax this season under Dutch manager Martin Jol, whom he also worked with at Spurs.
Franck de Boer took the team's helm right after Jol, who mainly relied on Mounir El Hamdaoui and Luis Suarez upfront, stepped down early in December.
For a while Mido was expected to be given more first-team opportunities as De Boer revealed that he usually deploys a three-pronged attack.
But the caretaker coach left Mido confined to the bench, saying the charismatic lad is still suffering from fitness problems.
Mido, who hasn't played a single minute under De Boer so far, will be working with Spanish boss Miguel Angel Lotina should he complete his move to Deportivo.