The 29-year-old joined Turkish club Genclerbirligi last summer but terminated his contract in January after a series of late and part payments of his salary.
He is now set to sign for Championship side Leeds on Monday after they were able to double the deal that was offered by Blackpool.
The Seasiders had appeared to be in pole position to land Stewart before Leeds stepped in for the midfielder, who left Hearts for Genclerbirligi last summer.
Stewart's expected arrival at Elland Road will help to strengthen a Leeds engine room as Simon Grayson seeks to keep his team's push for promotion on track.
He is notable for beginning his career with Manchester United and having played for both of the Edinburgh derby rivals Hibernian and Heart of Midlothian. Stewart has also been capped by the Scotland national football team.
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