Stokes, who is awaiting international clearance to complete the switch, made a huge impact during a loan spell under Hughes at Falkirk in 2006/07, scoring 14 goals in 16 Scottish Premier League starts.

The striker's form at Falkirk, where he netted three hat-tricks, quickly prompted Roy Keane to pay Arsenal £2m to take him to Wearside in January 2007.

Stokes turned down a move to Celtic in order to join Sunderland but most of his 38 appearances for the club came from the bench.

New Sunderland manager Steve Bruce has now allowed him to move on following a return of five goals. Stokes spent most of last season on loan at both Sheffield United and Crystal Palace but netted only once in the Coca-Cola Championship.

Stokes, who has three caps for the Republic of Ireland, said: “I’m absolutely delighted to be joining Hibernian and particularly pleased to be working with John Hughes again.

“I know how the manager works and I’m looking forward to producing my best for him and for the team.”

Hughes added: “Anthony has got bags of talent and I can’t wait to start working with him again. He has scored goals in the SPL before and I’m certain that he will score goals again. I see him as a great addition as we continue to develop the squad.”

Hibernian, who face Falkirk in the SPL tomorrow, will unveil their new signing at a press conference on Monday.