The Defender has signed for the Blades initial on loan so that he can be placed on the bench in tonight's South Yorkshire Derby at Rotherham United but will complete a £200,000 transfer later this week.
However the Blades will be forced to pay a further £50,000 should promotion be achieved and if the club do sell then 10% of the transfer fee will go to the Bantams.
United did though beat rivals Sunderland and Champions League chasing side Charlton Athletic for the signature of the Nottingham born centre-back.
Harvey told the Bantams' website: "The current financial situation at the club meant the sale of Simon Francis had to be completed and whilst there was interest from other clubs, the player indicated a preference to join Sheffield United.
"The other offers the club received were broadly in the same quantum as the offer from Sheffield United which demonstrates that the fee we will receive is in line with what the football market believes is appropriate for a young player with undoubted potential."