Former Barnsley loanee Jacob Mellis has agreed a two-year deal with the Reds and is expected to sign tomorrow.
BBC Radio Sheffield reporter Paul Walker broke the news on Twitter, also stating that Egyptian striker Mido is set for talks on Thursday, extinguishing rumours he was set to sign today.
Mellis, 21, spent a successful loan spell with the Reds in 2011 under Mark Robins, making 15 appearances in a Barnsley shirt and scoring two goals, including this wonder strike at Leicester.
He was released from his Chelsea contract along with team-mate Billy Clifford after setting off a smoke grenade at the club's training ground.