The News of the World says Fulham see £500k-rated Buddle, 29, as an ideal replacement for Erik Nevland who returned to Norwegian club Viking in May.
The American, whose Christian name is inspired by Brazilian legend Pele, has already proven he can link up well with Fulham's second most potent threat Clint Dempsey in the current USA squad.
Buddle played for the national against England in their opening World Cup match after David Beckham warned England's defenders of the threat his pace posed to the Three Lions defence. The pair have both played for Galaxy since 2007.