The 24-year-old has agreed a three-year contract at Kenilworth Road.
Keighley-born Pearson started his career at Blackburn Rovers, and he moved on to Rochdale and FC Halifax Town before returning to the Football League with Accrington Stanley.
The former England C international signed a three-year deal and moved to Oakwell last summer for a fee believed to be around £500,000 but has been unable to hold down a regular first-team place with the Reds.
Striker James Hanson, who spent the second half of last season on loan at Bury, has left Sheffield United by mutual consent.
The 30-year-old joined the Blades from Bradford City in January, 2017, helping them to the League One title but injuries restricted him to 15 appearances and one goal, on his debut against AFC Wimbledon.
Middlesbrough will complete the £5m signing of Sunderland’s Paddy McNair today. The Northern Ireland international underwent a medical yesterday afternoon and has agreed personal terms.
Boro have rejected an £8m bid from Nottingham Forest for striker Patrick Bamford.
The 24-year-old scored 14 goals in 53 appearances for Boro since a £6m move from Chelsea in January 2017.
Boro could still lose £20m-rated defender Ben Gibson to Everton, who are prepared to offer Muhamed Bešic as part of any deal. The 25-year-old German made 15 appearances on loan with the Boro last season and impressed manager Tony Pulis.
Everton manager Marco Silva is also preparing a £12m-bid for Jarrod Bowen, whom he coached at Hull City.
The Tigers’ prize asset scored 15 goals last season in helping the club avoid the drop from the Championship.
Sheffield Wednesday have handed a two-year-deal to 18-year-old Bulgarian striker Preslav Borukov, who shone in the development squad. after joining from PFC Levski Sofia.
Owls striker Jordan Rhodes is wanted on loan by Norwich City, who, however, have been linked with a permanent deal for Peterborough striker, Jack Marriott, who netted 33 goals in League One, last season.
Bradford City are seeking defensive cover after Timothée Dieng decided not to renew his contract after 78 appearances for the club.
Rotherham United manager Paul Warne is hoping to re-sign Fulham goalkeeper Marek Rodak on loan again.
Former Huddersfield and England youth goalkeeper Alex Smithies, 28, could be joining former Terriers chief Neil Warnock at Cardiff City from QPR.
Paris St Germain have reportedly offered Marco Verratti plus cash to Manchester United to bag Paul Pogba.
The French champions have enquired about the availability of midfielder Pogba, and would be prepared to consider moving on Italy international Verratti if they could bring in Pogba as part of the deal.
Chelsea will refuse to sell Ruben Loftus-Cheek in the summer after his impressive displays at the World Cup. The Blues may be forced to let the 22-year-old midfielder go out on loan again, but believe his long-term future is at Stamford Bridge.
West Ham have had their £12m bid for West Brom defender Craig Dawson turned down. He is a target for a number of Premier League clubs, with Albion understood to be rating the 28-year-old at more than £20m
Manchester United are eyeing a move for Real Madrid midfielder Mateo Kovacic, 24.
Eden Hazard is reportedly willing to reject £340,000-a-week pay offer from Chelsea to join Real Madrid.