Andriy Shevchenko admitted he was 'really happy' after ending his Chelsea experience with a move back to AC Milan.
The deal - which is subject to a medical - has brought to an end months of speculation linking Shevchenko with a return to the San Siro.
The Ukraine striker endured two disappointing years at Stamford Bridge following a big-money move from Milan and has likened his return to winning the Champions League - a prize he missed out on with Chelsea in last season's final.
'I'm happy,' he said. 'I have hoped for a return for a while and yesterday I began to believe that this deal could end well.
'For me it is as if I've won the Champions League.
'There were some complications, but now that everything is resolved I am really happy.'
Shevchenko will have a medical on Monday and if all goes to plan he will link up with his new team-mates - many of whom are familiar faces from two years ago - on Tuesday.
The 31-year-old could make his return to the Milan team in the first game of the season - at home to Bologna on August 31.
Chelsea and Milan have not disclosed details of the deal but reports earlier in the week suggested Shevchenko was set to move on a season-long loan.
The Blues signed the Ukraine international in the summer of 2006 but he failed to live up to his reputation as the world's finest striker.
The former European footballer of the year scored just four league goals in the 2006-07 campaign and five last season as injuries and form undermined his impact in west London.
Shevchenko left Milan as the club's second-most prolific goalscorer of all-time having scored 127 goals in 208 games during a seven-year spell and he will now be hoping to close in on Gunnar Nordahl's 210-goal tally.
Immediately after the deal was announced, Milan vice-president Adriano Galliani happily welcomed the striker 'home'.
'After a series of frantic phone calls during the day today, we have reached an agreement with Chelsea,' he said.
'Andriy returns to the Rossoneri, tomorrow he will be in Milan, Monday he will undergo a medical, then he will sign a contract and from Tuesday he will be available to Carlo Ancelotti.
'We succeeded in bringing home the player who in the last 50 years has scored the most goals in our shirt.
'President (Silvio) Berlusconi and I am happy, as is our coach and I believe also our players.
'I believe that Milan are the only club in the world to have three European players of the year in their squad.'
Galliani added: 'Andriy has returned home and I am happy about it. I am a Milan fan and I am very happy.
'I've spoken to Andriy 48 times in the past three hours...the terms of the agreement are very private.
'Between today and tomorrow Andriy will be in Milan and he will start again his life as a Milan player.
'Andriy made a mistake in leaving and I believe that in the past two years he has realised that this is his home.
'Now he has made his financial sacrifices but at this point the only thing that matters is that he returns to us.'