The Blades have seen their bid to sign Hao hit troubles
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Sheffield United say Hao Haidong will arrive at Bramall Lane in February after the China international was given the green light to join the Blades.
Hao's move was held up after a court banned him from leaving China over an unpaid debt, but he received international clearance on Friday.
The 34-year-old will combine playing with coaching duties.
"We've worked tremendously hard on this deal," club vice-chairman Terry Robinson told United's website.
"We are pleased that we have now got the green light to bring Hao over here."
It is four years since Warnock first tried to buy Hao.
The Blades are forging strong links with China and see Haidong as a key part of their future plans, as well as a potentially useful squad member.
Hao said his decision to leave current club Dalian Shide was partly due to China's shock exit from the Asian 2006 World Cup qualifiers last November.
The striker was banned for a year after spitting at a referee in 1998. In 2001, he was embroiled in a public row with former coach Bora Milutinovic over the Yugoslav's selection policy.
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MMIX
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