Chris Wilder has claimed Manchester United boss Ole Gunnar Solskjaer has given the go-ahead for Dean Henderson to extend his stay at Bramall Lane.
Henderson was set to return to the Manchester club on July 1 after the expiration of his loan contract at Sheffield United.
Wilder confirmed the United boss has agreed to let the 23-year-old continue at Sheffield until the end of the season after holding talks to help the former England U-21 international continue his development.
Chris Wilder said: “I spoke to Ole yesterday morning. He was up and about at the training ground preparing his team. I thanked him for his co-operation with Dean. We are in process in the next couple of days of finalising Dean staying with us to the end of the season.
“The manager was brilliant and he always has been with me and the football club.
“He was very pro Dean staying and in favour of what we have done for Dean in terms of the opportunities we have given Dean to play Premier League football.
“Dean has been hugely involved in our performances and results over the last two years and we’ve been delighted with him.”
The Blades are also keen on keeping the shot-stopper for next year, Wilder has insisted after talks with Solksjaer.
“We’ve had initial early conversations,” said Wilder. “Of course we would be open to Dean coming back, but I have got huge respect for Manchester United and the football club.
“He is Manchester United’s player so Manchester United will make that decision, what is best for themselves, in conjunction with Dean.
“From our point of view, if there was an opportunity we would love to take that up.”