Wojnarowski notes that the talks are expected to extend into Wednesday and possibly Thursday. Both the Philadelphia 76ers and Miami Heat have shown interest in Lowry, according to Wojnarowski.
The 34-year-old Lowry is in his ninth season with the Raptors and is averaging 17.6 points, 5.6 rebounds and 7.4 assists over 36 games.
Powell, 27, has spent his entire seven-year career in Toronto and is averaging 19.5 points. 3.0 rebounds and 1.8 assists over 41 games this season.
The Raptors are currently on a nine-game losing streak.