The 27-year-old has agreed a three-year contract to join the Edinburgh club for a third time.

He spent a year at Easter Road before joining Celtic in 2015 and was on loan there last season.

Hibs head Coach Neil Lennon said: "It's no secret that Scott is a player I admire and wanted back at Hibernian."

The announcement came shortly after Celtic manager Brendan Rodgers said that there was a possibility of Allan and winger Lewis Morgan being sent out on loan for the rest of the season.

Lennon has been bemoaning his side's lack of creativity in midfield and told Hibs' website: "He's a player who suits the attacking brand of football we like to play - the type that gets supporters off their seats."

Chief executive Leeann Dempster spoke of the club's determination to bring Allan back and said: "It's an arena and a club that brings out the best in Scott and, from speaking to him, it's clear that it means a lot to him."

While Allan has not played first-team football since ending his spell on loan to Hibs in May, the 22-year-old Morgan has made only one start for Celtic since completing his move from St Mirren this summer,

Suggesting several fringe players could go out on loan, Celtic boss Rodgers said : "I have spoken to them about game time and it is something that might happen over the next couple of weeks.

"Scott Allan has been unfortunate for his time here. He's a player that I've really liked."

Rodgers pointed out that, although Allan had done well at Hibs, it had coincided with Celtic success with their current squad.

"It's been very difficult for him to break in, nothing to do with his training, his attitude has been first-class," he added.

"He is at the age now where he just wants to play football. There has been some inquires about him."