Swansea City have confirmed that Gylfi Sigurdsson has agreed personal terms ahead of a permanent move to the Liberty Stadium.

The Welsh outfit earlier had a £6.8m bid accepted by German club Hoffenheim and have now reached a deal with the midfielder.

Sigurdsson spent the second half of last season on loan at the Swans, scoring seven goals in 17 starts.

This form attracted reported attention from several other Premier League clubs but it seems that the Icelandic international is set on a return to Swansea.

"The club are delighted to have agreed terms with both player and club following Sigurdsson's hugely successful loan spell last season," a statement read on Swansea's official website.

Manchester United and Liverpool were both thought to have been interested in the 22-year-old.