The Owls signed the German defender from Arminia Bielefeld in 2019 and he has featured 70 times for the club over the last two seasons.
But the 30-year-old has been agitating for a move away from Hillsborough since they were relegated from the Championship last season.
Borner wanted to terminate his contract as Sheffield United failed to pay his wages for a few months and a move to Hannover has been in the pipeline for some time.
The dispute between the defender and Wednesday meant Hannover felt that they could snap him up on a free transfer but according to German daily Bild, that is not the case.
The two clubs have worked out a broad agreement and are now finalising the details of the deal.
The German club will be paying a six-figure sum to Sheffield Wednesday for Borner’s move back to Germany.
The defender has already agreed personal terms on a contract and is waiting for the two clubs to finalise the deal.
