Lincoln City have agreed to pay League Two rivals Torquay United £35,000 in staged payments for Mustapha Carayol.
The winger originally signed for the Imps in May, but the club had to compensate the Gulls as he is under 24.
The League Two rivals were due to meet at a transfer tribunal after being unable to reach a deal over the summer. However, they came to an agreement on Monday morning.
Lincoln City chairman Bob Dorrian told BBC Lincolnshire: "We were a way apart at one stage but we were lucky enough to play them at the weekend.
"We were able to put a proposition to them which, with a few adjustments, they agreed to on Monday morning."
"There is a fee involved and there's appearance money and a sell-on clause. We're very happy with the deal. We think we've signed an excellent player and he hasn't cost us an awful lot of money in real terms."