Championship side Nottingham Forest have agreed a deal with Hull City to sign defender Jack Hobbs, according to Reds chairman Fawaz Al Hasawi.
Hobbs, 25, joined the Reds on a season-long loan in July, with a view to a permanent deal - which Tigers boss Steve Bruce says is "close to £1m".
The Forest chairman said on Twitter: "I am delighted that I have agreed a deal with Hull City's chairman for Jack."
Reading were also interested in Hobbs, who is out of contract in the summer.
Bruce said: "I think it's close to a £1m we've got for Jack. He's a really good lad and we wish him well for the future."
Earlier this week, Bruce said Hull had received a "substantial offer from Reading" and warned Forest to make a bid quickly.
Bruce told BBC Radio Humberside: "My job is to look after the interests of the club and if somebody is offering us a lot of money then we have to look at it.
"He has gone there [Forest] and done very well, but if they think they are going to get him for nothing, then we've got a decision to make."
The former Lincoln City, Liverpool and Leicester City defender, who was ruled out of action for around two weeks with a hamstring injury on Monday, has played 27 games while at the City Ground.