Everton have offered academy product Jose Baxter a 12-month contract, despite the player currently serving a year-long ban for breaching rules on drug-taking.
The 24-year-old will end his suspension in June and will be welcomed back into the Everton fold for pre-season before joining up with the Under-23 squad under coach David Unsworth.
According to the Liverpool Echo, Unsworth and chairman Bill Kenwright decided to bring back Baxter, who left the Toffees in 2012 for a spell at Oldham Athletic.
Three years later Baxter joined Sheffield United, but after failing a drugs test, was banned from competing for 12 months.
The midfielder, who began the suspension in August, is said to have recently been working on a number of projects with Everton in the Community, and he is expected to continue that when he re-signs for the Merseyside outfit.
The Liverpool Echo quotes Unsworth as saying: "It is important to say it will not be a first-team contract. He will be given the same opportunities as everyone else. If that means he moves on to a Championship club or a League One club later on, that will be down to Jose.
"We want to help because that is the sort of club we are. He is one of our own. But I have said to Jose, in no uncertain terms, that this is your last chance."
Baxter made 15 first-team appearances during his first spell at Everton.