Rovers announced a formal approach for the 37-year-old on Wednesday and, following a day of negotiations led by managing director Derek Shaw, Blackpool cleared the way for Appleton and first team coach Ashley Westwood to discuss terms.
A statement on Blackburn's official website read: "Following lengthy discussions with Blackpool chairman Karl Oyston, Blackburn Rovers can confirm that the club has been granted permission to speak to Michael Appleton and Ashley Westwood about the vacant manager's position at Ewood Park.
"Talks will take place tomorrow (Friday)."
Rovers travel to Wolves in the Championship tonight looking for a fourth consecutive win under caretaker boss Gary Bowyer.
Such has been the improvement demonstrated under Bowyer and head of youth Terry McPhillips, Blackburn last week announced the duo would remain in charge of first-team affairs until the end of January - a scenario that now seems highly unlikely.
"We're not disappointed at all," said Bowyer. "We've thoroughly enjoyed our time working with the players.
"We'll just keep going. We will be notified by the board in terms of what happens and we'll carry on with whatever role we have."
Blackburn forward Colin Kazim-Richards took to Twitter give his backing to Bowyer.
Shortly after Blackpool gave Appleton permission to open talks, Kazim-Richards tweeted: "Pls no". Having been challenged by a number of fans, he added: "To let you no whoever is in charge my priority is the same #Promotion but I have to say playing under Gaz after the last has been fresh air.
"I'm not talking any manager in particular I'm just saying tht this is the best run we've had this season something's going right."