Hibernian's Osbourne set for Blackpool
The 24-year old is in talks with the Seasiders and is tipped to sign a £250,000 deal with Hibs expecting him to depart very soon.
"They (negotiations) are underway, we are talking to a club at the moment. It is well documented at this stage so we are down the line on that," Hibs boss Pat Fenlon told Hibernian TV.
"It is not concluded by any stretch of the imagination. Ossy has made it clear he would like to go back down the road, so from our point of view we need people who are committed here and people who want to help us and improve us and I understand from his point of view that he wants to get closer to his family.
"It may be gives us more finances to get someone else in. It is a situation that has developed over a short period of time but something we can get to the end of very, very quickly."