Freeman is the Blades’ first summer signing since winning automatic promotion to the Premier League.
The Spain Under-21 international left City last year but the Premier League champions are set to activate a £5.3million buy-back clause.
Celtic are returning from a pre-season training camp in Austria and Switzerland.
Former Benfica winger Costa will complete a permanent switch to Elland Road next summer, the Sky Bet Championship club said.
The 18-year-old scored seven goals last season.
The 24-year-old left the Austrian club’s training base on Wednesday morning to conclude the deal.
The former Manchester City midfielder recently dismissed reports he had retired to move into coaching.
Cocu is poised to become Derby’s seventh manager in four years.
The Spain international is out of contract at the end of next season.
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