The talented striker has never made the grade in Glasgow.
The Icelandic club announced the news on their official website earlier today, stating that he had rejected a chance to join rivals Breidabik in order to head to the capital club.
The deal, which will see him sign a two-and-a-half year deal at the club, will be ratified when the Icelandic transfer window opens on the 15th July.
The Icelandic striker, who has scored once in two Iceland caps, arrived at Celtic from Fram in 2013 but never featured for the Celtic first-team since his move to the club.
He spent last season out on loan at Danish side Brondby along with fellow Celtic striker Teemu Pukki.
But he battled with injuries last term and managed just 11 league games, scoring one goal.
Signed by Neil Lennon, he arrived with real promise after an excellent stint with his former club, but he will now be hoping to rediscover his best form back home.
He follows Joe Chalmers, Lukasz Zaluska, Teemu Pukki and John Herron in leaving the club this summer.