Fiorentina have agreed a deal to sign Slovenia international Josip Ilicic from Serie B side Palermo.
The 25-year-old playmaker has spent that last three seasons at Palermo having previously played for Maribor, Interblock and Bonifika Izola in his homeland.
Ilicic scored 11 goals in 32 league and cup matches for relegated Palermo last term and has made 22 appearances for Slovenia.
A statement on Fiorentina's official website read: "Fiorentina and Palermo announce they have reached an agreement for the permanent transfer of Josip Ilicic. The agreement is subject to the player signing his contract."
Following extended consultations with the city council, terms have now been signed and agreed by both parties.
Posh chief executive Bob Symns said in a club statement: "This marks a unique milestone in the history of the football club and will also show a long-term benefit for not only the club but for the local community, its people and the business sector as a whole.
"Whilst the journey to finalise has taken longer than originally predicted, the complex and detailed new lease negotiation and funding challenges have rightly been afforded the necessary time to complete in a professional and sustainable manner."
He added: "The city council have always been honest and precise in its South Bank vision and how the football club could knit together its aspiration for sport, community, education and carbon challenge excellence at London Road. We are almost there."
The 29-year-old has impressed Magpies boss Chris Kiwomya during pre-season and has been rewarded with a permanent deal at Meadow Lane.
"It's fantastic, I'm really happy to be here because it's a great club and I've been impressed with everything I've seen so far," Fotheringham told the club's official website.
"I've been made to feel very welcome here right from the start and I made my mind up about signing here very easily.
"The thing that really impressed me about the squad is that there's a real togetherness and team spirit, and I believe that bodes well for the future."
He added: "Everything's set up here for us to do well and be in the Championship and that's our main aim."
