Steele was an ever-present for the Championship club last season and has also played for the England Under 21s on several occasions.
The question remains to be seen whether he will be first choice for Sunderland or if will spend most of his time on the bench.
Sunderland have had a busy summer with Maritmo defender Valetin Roberge, Basel midfielder Cabral and Lazio's Modibo Diakite all joining on July 1.
They have also signed Benjamin Mendy and signed two other youngsters. As well as Mignolet leaving, Ahmed Elmohamady has joined Hull on a permanent deal.
Steele may favour a move to stay in the North East but after a whole year of first-team football the bench may not delight him.
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