The Cottagers have signed five new players this summer in the form of Alphonse Areola, Antonee Robinson, Ola Aina, Mario Lemina and Kenny Tete.
However, none of them are offensive signings and they are likely to bolster the attack before the transfer deadline next month.
As per Bild, the Cottagers have reached an agreement with Leipzig over a loan deal for Lookman, who was previously in the ranks of Everton.
Lookman returned to Leipzig permanently last summer after previously impressing for them on loan in 2018, where he bagged five goals and four assists from 11 league outings.
The 22-year-old has since struggled to establish himself, having failed to make any contribution in 13 appearances and he now appears on the cusp of returning to England.
Scott Parker’s side have made a disappointing return to the top-flight with back-to-back losses and they definitely need more firepower in the attack.
Aleksandar Mitrovic has continued his good form from the promotion-winning season with a couple of goals already, but the club still need more creative players in the squad.
Fulham will reportedly pay £1.83m (€2m) to sign Lookman on loan.
Stats from Transfermarkt.com