The Sun suggested over the weekend the move had stalled with the 29-year-old waiting until he receives a pay-off from the Whites to cover a wage drop with the Blades.
But today's Sheffield Star says that Sharp is still closing in on a return to his hometown club to play under Nigel Adkins for the fourth time in his career.
The Star reports that the two clubs are close to agreeing a £500,000 fee which could see him heading back to Sheffield.
However, there are a number of hurdles to overcome with the Blades wages limited in League One and that could pave the way for Wigan Athletic to table an offer.
The Latics still benefit from the Premier League's parachute payments and could afford to meet Sharp's wages demands.
Leeds head coach Uwe Rosler confirmed that the DW Stadium club had asked to be informed about the striker's availability.