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Coppell could throw the wide man straight into the team for Saturday's crunch game with Sheffield United at the expense of John Salako.
Twenty-seven-year-old Brooker could be joined at the club by Darren Powell as the Royals have also agreed a fee with Palace for their injury-plagued centre-back.
But Brooker will be hoping to re-earn his reputation at the Madejski. He signed for Leicester City last summer as the Foxes looked to bolster their squad to meet the demands of Premier League football but has failed to make an impact on the first team so is being farmed out by Micky Adams so that he can get some first team football under his belt.
Adams revealed to the Leicester's official site that he is happy for Brooker, who played under Coppell at Brighton last season, to join Reading.
"Paul hasn't featured in the squad of late and the move to Reading will allow him to get valuable some first team football under his belt," he said.
The speedy midfield-man will add some spice to Reading's midfield that has looked increasingly bland in recent weeks. James Harper, despite his goal last night, has largely failed to make an impact on the team this season whilst on the wings Salako and Murray have also failed to impress.
The Hammersmith born midfielder had his most prolific ever season for the Seagulls last year, weighing in with six goals from midfield. His half dozen included a controversial goal at the Madejski which was to condemn Reading to a defeat.
Brooker's impending capture shows that Reading are serious about challenging for the play-offs this season, but fans will wonder if a player they've hardly heard of can be up to the job. Coppell, who knows the midfield-man, must know what he is doing.
>FootyMAD's Paul Brooker Stats