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 said: "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."
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