Both Grimsby and Brighton are in competition for the player's signature, but it seems Woodhouse is on his way to Millmoor once wages have been sorted out.
Reports claim Blues wanted Rotherham to pay three-quarters of the players salary but the Yorkshire club wanted to pay only half, prompting Woodhouse to offer to take a cut in his present wages to get the deal moving again.
Today, reports were claiming that Woodhouse had signed but The Millers have dismissed these reports although they believe he will do so before United's next Nationwide League Division One game, against Derby at Pride Park.
"It is anticipated the deal will go ahead early next week," reported Rotherham's official website.
Woodhouse, who has made only three appearances for Blues this season, was in the starting eleven for the reserve game with West Brom at Damson Park last night.