Murphy has become Danny Wilson's second signing in the January transfer window after signing Danny Higginbotham, who signed on New Year's Day in a free transfer from Stoke City. He play either on the wing or as a forward and will no doubt link well with Nick Blackman.
Blades boss Danny Wilson told sufc.co.uk; "We are absolutely delighted to have secured a deal to bring Jamie to Sheffield United because the lad is a real talent. He is quick, strong on the ball and a good runner in possession. He will put defenders on the back foot and will offer us great versatility in forward positions.
"Jamie has a real eye for goal and will give us that bit extra quality in the final third that we need to unlock some stubborn League One defences."