Matlou, a former South Africa junior international, is poised for a return to the country after spending a season with Portuguese club AD Sanjoanense.
He previously played for the likes of Bidvest Wits reserves team and in the GladAfrica Championship for Cape Umoya United and Cape Town All Stars.
The 23-year-old is an attacking midfielder who will widen the options for Brandon Truter in the new season.
Earlier this year, Matlou was a victim of alleged racism in Portugal being called ‘little monkey’ by a match official, which evidently contributed to his decision in returning home.
"His Swallows contract just needs the formalities to be completed but it is a deal that is going through as he has left a huge impression on everyone at the club. He is a signing that will make a difference at Swallows," says a contact.
Meanwhile, Swallows still have Mark Mayambela, George Lebese and Mogakolodi Ngele training with the club, along with former Maritzburg United midfielder Mphakamiseni Nene.
Nene has most recently been playing for KF Trepca 89 in Kosovo.
The most recognisable signing Swallows have made to date is Thandani Ntshumayelo, who was handed a contract after a lengthy spell training with the club.