The deal, which is subject to global clearance, will go through in January when the winter transfer window opens.
Joey Barton is set to re-join Burnley on a free transfer after leaving Scottish Premiership club Rangers.
However, it proved an unhappy spell for the 34-year-old at Ibrox and he was suspended following a training-ground spat with team-mate Andy Halliday in the aftermath of the humiliating 5-1 Old Firm defeat to rivals Celtic in September.
Barton was voted Burnley fans' player of the year last season, his first with the club, having played 38 league games in their Championship-winning campaign.
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Barton has agreed terms to go back to Turf Moor subject to global clearance after deciding to leave Sean Dyche's side for Rangers in the summer.
He had been training with old club Burnley and it is with them that he has agreed a new deal until the end of the season, beginning in January - subject to global clearance.
Regarded by many as a talented central midfielder with an all-action approach, Joey Barton has divided opinion in the football World with his belief in laying his thoughts out on the line.
Barton has previously represented Manchester City, Newcastle and Queens Park Rangers at Premier League level.