Portsmouth have confirmed that Harry Redknapp is to return to the club as manager.
Southampton cleared the way for Redknapp to return to Fratton Park by agreeing a compensation package with their neighbours.
That was the major obstacle preventing Redknapp going back to the club he left in November 2004.
Portsmouth confirmed Redknapp would be present, completing a dramatic turnaround in his career, after a tumultuous parting of ways with Pompey chairman Milan Mandaric last year.
Southampton rejected an initial offer from Portsmouth to speak with Redknapp, with chairman Rupert Lowe calling a £125,000 package derisory.
That compensation deal included £75,000 in the event of Portsmouth avoiding relegation and was rejected out of hand, leading Mandaric to claim Redknapp was out of the running for the job.
A new financial package has been agreed, paving the way for Redknapp to leave Southampton after 12 months at St Mary's.
He joined Southampton in controversial circumstances, just days after leaving their fiercest rivals, and is sure to cause more disquiet by heading in the opposite direction.
Lowe said: "Portsmouth have produced a compensation package that is just acceptable to this club and I consider that it is in Southampton's best interests to get on with the future rather than dwell on the past. I cannot comment on the quantum of the settlement as both clubs are bound by a confidentiality agreement."
