Celtic have activated the clause to bring Stephen Welsh back from his loan spell at Motherwell.
The 25-year-old defender had been expected to stay at Fir Park for the remainder of the Scottish Premiership campaign, but will now make his way back to Celtic.
As first revealed by Sky Sports, Celtic exercised the option to terminate the loan agreement in January, with Martin O’Neill keen to increase depth at centre-back.
The Parkhead side were believed to have had until January 14 to make a decision on whether to recall Welsh.
The report adds that Celtic had previously been open to considering offers for Welsh but have now opted to retain him as part of their squad.
It is also claimed that a Scottish Premiership club submitted an enquiry for Welsh on Friday.
Across 17 outings for the Steelmen under Jens Berthel Askou, Welsh has caught the eye within the Dane’s possession-focused system.
However, Sky Sports report that Welsh has now been brought back to Paradise and is expected to re-enter the first-team setup under Martin O’Neill. The Irishman is seeking defensive cover, particularly with Jamhai Simpson-Pusey returning to Manchester City.
The 25-year-old had attracted interest from Aberdeen. The Dons may revisit a move later in the window, but Celtic appear keen to keep their options flexible. O’Neill is expected to use Welsh as a squad player, which is understandable given the absence of a recognised right-sided centre-back.
Welsh has featured 68 times for Celtic, scoring four goals and registering one assist. He has played under Neil Lennon, Ange Postecoglou and Brendan Rodgers — the latter approving his loan switch — and will now be hoping to establish himself under O’Neill as Celtic chase Hearts and Rangers in the title race.
Meanwhile, Celtic have expressed an interest in Hibernian forward Kieron Bowie.
The Parkhead club want to be kept informed on any developments regarding the Scotland international.
Rangers are also tracking the striker, with Hibs reportedly valuing him at £6.5m.
Celtic saw a potential move for Kyogo Furuhashi collapse last week, with the attacker opting to stay at Birmingham.
At present, O’Neill has Johnny Kenny as his only fully fit natural striker, although Daizen Maeda can also operate in that role.
Callum Osmand and Kelechi Iheanacho are both sidelined through injury.