Striker Sylvain Wiltord should officially be confirmed as a Rennes player on Tuesday.
French champions Lyon, who the 33-year-old currently plays for, had insisted that Wiltord would see out the remaining year on his contract.
But the player's lawyers have resolved the dispute enabling the former Arsenal star to sign a two-year deal at Stade Rennais.
He also has an option of a further year at the club where he initially began his professional career.
"It is the comeback of a child from the club after an amazing career. His sporting career will go on and he will help us grow," Rennes chairman Frederic de Saint-Sernin told L'Equipe.
Saint-Sernin also confirmed that the Brittany club are also set to sign Brazilian forward Marico Emerson Passos for 5million euros (£3.4m) from Qatari side Al-Saad.