Bristol City drew 3-3 yesterday at home to Barnsley after fighting their way back after the Tykes lead the game by two goals following a brace from Andy Gray.
Stead was signed by Neil Warnock from Sunderland in January 2007 in a £750,000 deal and made his debut in a 1-1 draw with Portsmouth before being relegated from the Premiership in May.
In September 2008 he signed initially on loan to Ipswich Town and made a permanent move in January. He left Bramall Lane having made 32 (15) appearances and scored 11 goals.
The Robins have also agreed a deal with Brad Pitman from AFC Bournemouth; the striker turned down a deal to join Premier League outfit Blackpool earlier in the week.