Sheffield United have won the race to sign Scunthorpe striker Billy Sharp.
The 21-year-old former Blades trainee, released by Neil Warnock in August 2005, has opted for a return to Bramall Lane ahead of a move to Wolves, Norwich and city rivals Sheffield Wednesday.
Blades football club chairman Terry Robinson told PA Sport: 'Everything has been agreed, we just have to formally conclude the deal with Scunthorpe.
'I can't disclose the length of his contract or the transfer fee at this stage, but we will be making a statement in due course.
'The news has only come out because he's told Sheffield Wednesday he's not going there and we've had to make a brief announcement.'
Lifelong Blades fan Sharp had held talks with Norwich, Wolves and Wednesday this week, but the chance to prove himself at his hometown club was too good to turn down.
United sold Sharp to Scunthorpe for £100,000 and under the terms of that deal are entitled to 25% of any future transfer fee for the player.
Sharp is one of English football's hottest properties after finishing the season as the Coca-Cola Football League's leading goalscorer.
His 32 goals in all competitions last season helped fire Scunthorpe to the Championship.
When asked whether the decision to allow Sharp to move to Scunthorpe in the first place had been a mistake, Robinson added: 'No. The agreement probably gave him the opportunity to develop far faster than he would have here.
'It shows probably that the system and development of young players in this country falls down at the middle stage, where developing players do not or cannot get enough competitive football.
'To do that they have to go out on loan or transfer to a club where they do get regular games.
'Billy did not want to leave, he just wanted the chance to play first-team football and I must say Scunthorpe have done a great job.'
BBC Radio Humberside, meanwhile, have reported that midfielder Ian Ross and winger Jonathan Forte are set to move in the oppositve direction as part of the deal.