The club confirmed the decision had been made in a statement on their official website on Friday, adding, "in the following days, the terms will be agreed with both Everton and the player" with Deulofeu set to sign a deal until 2019 back at the Camp Nou.
The tricky winger spent the second half of the 2016-17 season on loan with AC Milan after an inconsistent spell with Everton. In Italy he showed what he can do with consistent playing time, boosting his transfer value in the process.
Deulofeu is a product of Barcelona's famed La Masia academy and made his debut for the senior squad in 2011. Long regarded as one of the club's best young talents, a lack of opportunities led to a number of loan moves and an eventual permanent transfer to England, with a buyback option.
He flashed his talent at times with Everton but didn't impress manager Ronald Koeman, who limited his minutes last season. Deulofeu fared far better in Milan, bagging four goals and three assists in Serie A.
He's a full Spain international, and per Squawka Football, his numbers with the under-21 side indicate he still has all the tools to come good:
As reported by Football Italia, Barcelona's original deal with Everton included a provision that makes it impossible for the Catalans to sell him on for a profit immediately. Deulofeu has to be a part of the first team this season, so manager Ernesto Valverde must have plans for the playmaker.
The Catalans lacked attacking depth behind their star trio of Lionel Messi, Neymar and Luis Suarez last season. Adding another winger who knows the system and culture for a limited fee is a smart piece of business.
Deulofeu hasn't progressed much since leaving the Camp Nou, but he remains an intriguing talent who has shown a scoring touch and the ability to take on defenders in the past.
The Spaniard will be given every opportunity to unlock his impressive potential, so it's easy to see why Barcelona took a chance on him.