Adlene Guedioura has agreed a permanent deal with Nottingham Forest after impressing on a loan spell at the City Ground.
The midfielder will become new manager Sean O'Driscoll's first signing once he has passed a medical.
The Algerian arrived at the club on loan from Wolves in January and made 19 appearances in the second half of the campaign, scoring once in a 7-3 win at Leeds.
O'Driscoll told the club's official website: "When I heard that Adiene was available for transfer, I moved quickly to sign him.
"He knows the club, knows the fans, and knows what's expected of him on the field. I look forward to utilising his expansive midfield play this season."
The Reds have paid an undisclosed fee for the 26-year-old, who became a fans' favourite during his stay
And new chairman Omar Al Hasawi was pleased to have got his man.
He said: "The Al Hasawi family is delighted to have secured Adiene Guedioura as Nottingham Forest's first signing under our ownership.
"He made a huge impact on the team last year and is just the kind of exciting player that we want to see gracing the City Ground this season."
Guedioura moved to Wolves in the summer of 2009 and made more than 30 Premier League appearances before falling out of favour.