The former England Under-21 international has agreed a three-year deal at Carrow Road, subject to the completion of relevant paperwork. Vaughan has had loan spells at Leicester, Derby and Crystal Palace in the past few seasons after struggling to establish himself at Goodison Park.
The 22-year-old came up through the ranks with Everton but his first-team opportunities remained limited and he has now become the first new addition to Lambert's Norwich squad ahead of their return to top-flight football.
Lambert, who has steered the Canaries to back-to-back promotions, believes Vaughan fits the profile of the type of player he requires.
"He's someone who fits in with the group in the sense that he's hungry to do well and has great desire," he told canaries.co.uk.
"He's already shown great potential as a young player with Everton and when I have seen him playing for them and for Crystal Palace I have always thought he was a threat in and around the box.
"I think James will be fantastic for us and provide extra competition for places, which is always good to have," he added.
Vaughan has agreed personal terms as well as passing a medical and the move only requires final approval from the relevant authorities before it is rubber-stamped.
Source: PA
Source: PA