Sheffield Wednesday have tied midfielder Liam Palmer down to a new two-and-a-half-year deal, before loaning him straight back to Tranmere.
Palmer spent the first half of the season on loan at Prenton Park, starting every game for Ronnie Moore's side.
But after securing his stay at Hillsborough until the summer of 2015, Owls boss Dave Jones has allowed him to return to the League One leaders.
Palmer told Wednesday's official website: "It's been a great learning curve for me personally and it feels like I've come a long way since starting out at the Wednesday academy.
"It goes to show it's there for the taking if you want it and work hard enough for it.
"I definitely see my long term future at Sheffield Wednesday but I'm really looking forward to helping Tranmere in their push for promotion."
The 21-year-old midfielder has started every league game for Tranmere this season after joining them in August, making 28 appearances.
Moore said: "I've been delighted with Liam this season. He has been a model professional while he has been here and a credit to Sheffield Wednesday.
"He's formed a great partnership with James Wallace and more recently Max Power in the centre of our midfield and has improved as the season has gone on.
"I think there's more to come from him too. He's not scored yet, but I think he has goals in his game.
"I'd like to thank Sheffield Wednesday and Dave Jones for allowing Liam to come back to us."