Ian Murray has returned to Hibernian after agreeing a short-term deal with manager Mixu Paatelainen.
Falkirk were believed to be in line to land Murray, who is capable of playing in either defence or midfield.
However, Skysports.com recently revealed that Hibs were keen on luring Murray to Easter Road.
And the 26-year-old has opted to return to Hibs after agreeing terms until the end of the season.
Murray captained Hibs before moving to Rangers in 2005 where he failed to settle and agreed a one-year deal with Norwich two years later.
And Murray has now moved back north of the border after being released by Norwich boss Glenn Roeder.
A statement on Hib's official website said: "Hibernian is pleased to confirm that it has agreed terms to sign Ian Murray, after he had agreed the termination of his contract with Norwich City.
"Ian rejoins the club on a short term contract to the end of a season and both club and player hope to complete his registration during the course of Friday."