It is understood the Terriers have made a significantly improved offer after one of £5million was rejected, and they are now waiting for a response.
Former England Under-21 international Pritchard is understood to be open to moving to the John Smith's Stadium after 18 months in Norfolk.
Norwich want to keep Pritchard, who has impressed after returning from an ankle injury in November, but with promotion from the Sky Bet Championship looking unlikely, Huddersfield's latest bid will test their resolve.
The Canaries are 13th in the table and nine points adrift of the top six after an inconsistent first season under head coach Daniel Farke.
Pritchard, 24, has made nine appearances this season and scored eight goals in 43 games for Norwich since joining from Tottenham in 2016.
Terriers boss David Wagner confirmed he was interested in Pritchard but will not be held to ransom.
"Pritchard is not my player, he is a Norwich player," he told the Huddersfield Examiner. "I like him, but I have my doubts if he will play for us because I know how expensive British players are in this window.
"If we are able to get some British players in they have to be reasonable prices. At the end it is all about quality. If it's one new signing with the quality to help us, good. If it's two, I'll take two. We need to be focused on the quality."