The aforementioned source claims that a £2m fee has been agreed between the two sides and that the Northen Irish midfielder will undergo a medicall with the Yorkshire side on Monday.
Sheffield United will be hoping that the 27-year-old can continue his impressive Championship record, having won back-to-back promotions during previous loan spells with Brighton and Fulham.
Norwood spent last season at Craven Cottage, making 41 appearances and scoring five goals.
The deal will initially go through as a loan which will become permanent in January, with the player having agreed a two-and-a-half-year deal.