Barnes, a self confessed Blades fans was reported top be resigning for new boss Colin Hendry at Bloomfield Road after originally being released but has now lived his dream of playing for his supported club.
It's Official: Barnes Signs
The Sheffield born keeper signed for the Lancashire club in 1997 for £100,000 from Rotherham United and has since played over 150 games for Blackpool.
The 25 year old keeper now becomes Neil Warnock's sixth signing in the space of three days, adding to those of Jon Harley, Barry Hayles, Alan Quinn, Leigh Bromby and Andy Liddell.