Mills has been a long-term target for Brian McDermott, and he could now see a deal come to fruition, Sky Sports reports.
Mills knows McDermott well from their time together at Reading, and Bolton appear keen on a deal - as the 27-year-old has struggled since his move from Leicester City last summer.
The deal has been made possible by Peltier's inclusion in the deal, and like Mills he could be moving just 12 months after his last transfer.
Peltier signed for Leeds last summer, also from Leicester where coincidentally he was a team-mate of Mills.