What I'm looking for is how to configure the terminal so that it behaves like nano -m.I know that xterm inside fvwm2 running on slackware does this but neither gnome or kde does it. I have tested installing fvwm2 in Ubuntu but xterm still does not have that feature. 
How to configure the terminal so that a mouse click will move the cursor to the current mouse position
mouse;xterm;cursor