Andres Fassi, vice president of the player's current club Pachuca, has confirmed to a media outlet that negotiations have taken place, but have not been concluded yet.
The player himself has told a Deportes base media outlet that he is looking to follow in the footsteps of former Manchester United striker Javier Hernandez. The Olympics take place between Aug. 5 and Aug. 21.
The player's father-in-law told Futbol Entre Lineas: "Yes. It's all done. Just missing some details and, after the Olympics, the deal will become official."
The Rio Olympics will see Mexico try to win the gold medal again, having done so for the first time at London 2012 four years ago, when they shocked Brazil in the final with a 2-1 victory at Wembley.
Lozano, who is nicknamed "Chucky" in his homeland, made his international debut in February against Senegal. There 20-year-old has made seven appearances for Mexico, including four at the Copa America in the United States.
The winger told a Deportes media outlet: "I cannot guarantee anything. Tomorrow, I report back with Pachuca. We will see what happens. I know the truth. I have to keep working."
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