It will be the Blades lasting tribute to the former Chairman.
The club plan to erect the statue in a special area at the rear of the Valad South Stand. The statue is expected to be unveiled in Autum and it will stand beside 2 other Blades legends Joe Shaw and Jimmy Hagan.
United have already announced that they are to name the soon to be opened new Junior Academy at Crookes to be named after him.
Thoughts by fans and other people are to name the Sheffield Parkway after him, to erect another statue of him in the City Centre and many more.
Blades to erect statue of Dooley
The funeral is to be held at the Sheffield Cathredral next Friday.
Derek Dooley, MBE, 1929-2008.