Lincoln City have agreed to pay League Two rivals Torquay £35,000 in staged payments for winger Mustapha Carayol.
Carayol, 20, joined the Imps in May but City had to compensate the Gulls as he is under 24.
Lincoln City chairman Bob Dorrian told BBC Lincolnshire: "We were a way apart at one stage but we were lucky enough to play them at the weekend.
"We were able to put a proposition to them which, with a few adjustments, they agreed to on Monday morning."
Although Dorrian would not be drawn on the deal itself, he added: "There is a fee involved and there's appearance money and a sell on clause.
"We're very happy with the deal. We think we've signed an excellent player and he hasn't cost us an awful lot of money in real terms."
Carayol has started in all of the Imps' matches so far this season, including the 2-0 home defeat by the Gulls on Saturday.
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