As is so often the case nowadays, the transfer fee has not been revealed, except for the Blades saying it is a club record amount. However it is widely believed to be £24m, potentially rising to £30m, 15 per cent of which is due to former club Bournemouth.
Manager Slavisa Jokanovic has said he will be allowed to spend the money raised. He has spoken openly of his interest in loaning Sampdoria's Ronaldo Vieira and Manchester United's Amad Diallo.
Ramsdale is only the second major transfer in or out of Bramall Lane this summer.
When Jokanovic took the job in late May he was told there was a chance Ramsdale and Sander Berge would be sold but it has taken until now for the goalkeeper to move on and midfielder Berge, also linked with Arsenal, remains.
On Monday the Blades made their first signing of the summer, loaning Ben Davies from Liverpool.
The Blades paid Bournemouth £18.5m for Ramsdale last summer after the Cherries were relegated from the Premier League.
The Stoke-born player came through the Blades academy but was sold to Bournemouth as an 18-year-old after only two senior appearances, both in the FA Cup.
Ramsdale's second spell at Bramall Lane started badly with some high-profile errors and his signing was one of those held against Chris Wilder when he left as manager in March. But
Ramsdale grew in confidence in the second half of the season and the quality of his performances were such that when Dean Henderson withdrew from England's Euro 2020 squad during the tournament, he was called into the squad.
He played 44 times last season but after a second successive Premier League relegation and perhaps with his international ambitions in mind - he is still uncapped despite his European Championship involvement - he has moved on again.