Reports suggest the 67-year-old, who has assisted Ian Holloway by scouring for potential signings for the Bloomfield Road club, is to become part of Blades boss Danny Wilson's allies for the upcoming campaign.
Dearden enjoyed six monumental years at Bramall Lane between 1970 and 1976 as a player, where he found the back of the net 61 times in that period, before moving onto pastures new to Chester City.
His contract at the Tangerines had expired at the end of the 2010/2011 season, which alerted Danny Wilson of his availability.
United's scouting project has been criticised by some fans in the past few years, but bringing in a familiar face to spearhead that particular task will no doubt bring renewed optimism of potential stars coming to S2.
Wilson commented: “The job Billy’s done at Blackpool has been excellent. I think it’s fair to say he’s helped to bring in some exceptional players for them. He is a top-quality individual.”
Image copyright to Action Images