Waybe Rooney left his boyhood club, Everton for Manchester United 13 years ago and has now returned to the Merseyside outfit.
The negotiations for the transfer has been ongoing, with Lukaku going to Old Trafford for £75 million.
Rooney cost United £25.6 million when he joined from Everton and will now cost Everton, a fee of £10 million.
Rooney also collected an enviable collection of silverware with United, including five Premier League titles, the FA Cup, three League Cups, the Champions League and the World Club Cup.
“Wayne has shown me that ambition that we need and that winning mentality – he knows how to win titles and I’m really happy he’s decided to come home,” Everton manager Ronald Koeman told the official Everton site.
“He loves Everton and he was desperate to come back. He is still only 31 and I don’t have any doubts about his qualities. It’s fantastic he’s here.”