Confirming the news to ITFC.co.uk, Town Chief Exec Derek Bowden said: "Jim has been speaking to John over the last few weeks and it's all been agreed.
"It's only a case of finalising the paperwork now, which should be done on Wednesday and then John will be with us as assistant manager."
Previously Gorman worked as assistant to former Town boss George Burley for a short spell during the 1998/1999 League Division One season and more recently has been workeing for former England manager Glenn Hoddle.
It is expected whilst current First Team coach Bryan Klug's title will not change, he will be more involved in the development of young players following the appointment of Gorman.