French newspaper Midi Olympique claims the 81-Test Blues flanker will link-up with the cash rich Top 14 team following the Super Rugby season.
Kaino has been tipped as a replacement for Springbok loose forward Duane Vermeulen who is reportedly being lured back to South Africa.
The two-time World Cup winner was usurped by Liam Squire as the All Blacks first-choice blindside this year after missing much of the international season to deal with personal issues.
The 34-year-old has played over 100 Super Rugby matches for the Blues during two stints in New Zealand, separated by a two year deal in Japan.
Toulon already boasts a number of former All Blacks in its squad, including Ma’a Nonu, Luke McAlister, Alby Mathewson and recently acquired Highlanders centre Malakai Fekitoa.