The 30-year-old ex-England international quit the game in May, when he was released by Leigh and subsequently talked of his battle with depression.
However, it is understood he has agreed a two-and-a-half year contract with the Tigers, starting with immediate effect, and an official announcement is likely to be made on Saturday.
Chase enjoyed his happiest times during his five years at Castleford, where he scored 47 tries in 129 appearances from 2009-13 and was crowned Super League’s best player in 2011.
The former Wests Tigers and St George Illawarra player dropped a bombshell later that year when he made himself available for England, despite playing against them for New Zealand Maoris less than 12 months earlier.
Chase, who qualified on residential grounds, went on to play for England in the 2013 World Cup, although he was dropped for the semi-final against New Zealand and never played again for them after a public fall-out with then coach Steve McNamara.
Salford paid the Tigers a substantial sum, believed to be in the region of £115,000, to secure his services on a four-year deal in 2013 but he spent less than two years with the Red Devils before being released.
Chase then signed for Championship club Leigh but quit two months ago.
Castleford, who need a stand-off after losing Ben Roberts for the season with a foot injury, are also being linked with a move for Manly Sea Eagles centre Tony Satini, 22.