Bournemouth have confirmed that Jason Pearce has agreed personal terms with Portsmouth.
Skysports.com revealed on Thursday night that the defender was close to a return to Fratton Park after an arrangement was reached for the 23-year-old.
Bournemouth's failure in the League One play-offs sparked speculation that he would leave and Portsmouth would have been due 50 per cent of any sell-on fee.
Peterborough failed in a bid and so Championship side Portsmouth have decided to re-sign Pearce, who began his career at the club before joining Bournemouth in 2007.
A short statement on Bournemouth's official website read: "Jason Pearce has today agreed personal terms with Portsmouth.
"The two clubs have agreed an undisclosed fee for the transfer of the defender."