The Independent says an announcement could be made as early as today, although the finer details were still being discussed last night.
Although the terms of the agreement will remain confidential, it is understood that, for West Ham, the key is that they will pay compensation spread over the next five years rather than as a lump sum. By staggering the payments, West Ham believe they have helped safeguard the future of the club.
The Blades lodged an initial claim for £30m, which was revised up to £60m and then back down to £45m.
It is understood they have now accepted substantially less than that figure, although the payments probably amount to more than the £5m-£10m West Ham had hoped to be liable for. However, because they are staggered, West Ham will be able to absorb them more easily into their budget.