Town are understood to have agreed a deal to sign Waterford youngster Aaron Drinan for a fee of €100,000 (£90,000).
The 19-year-old, who can formally join the Blues when the transfer window opens in January, was on trial at Playford Road along with Waterford team-mate John Martin in August.
Drinan, who has won caps with the Republic of Ireland’s home-based U19s side, joined Waterford from Cork City’s youth set-up in August and subsequently made four starts and one sub appearance, scoring once, as the Munster club carried off the League of Ireland First Division title and won promotion to the Premier Division.
Drinan, who is primarily a central striker but can also operate on either the left or the right, also played youth football with Cobh Ramblers.
Boss Mick McCarthy previously recruited former Blues striker Daryl Murphy from Waterford when Sunderland boss back in 2005, beating Town to the future Ireland international’s signature.
In the summer of 2013 he signed another Waterford youngster Jack Doherty for Town but the winger returned to Ireland the following year without breaking into the senior side. Former Blues Stephen and Noel Hunt also hail from the city in south-east Ireland.