Cole has come through the academy ranks at Welford Road - going on to make 70 appearances for the Tigers.
The 24-year-old, who had a short loan spell at Nottingham, has also won 23 caps for England since making his international debut in the 2010 Six Nations.
And director of rugby Richard Cockerill is delighted to bring a successful end to protracted talks over a new deal.
"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."
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
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Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
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The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
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The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.