Agwanda shone while at the sugar belt side before joining Sofapaka and eventually Gor Mahia.
Things did not go as planned for the striker and he opted to join the Dockers, where he failed to impress and later joined the Ken Kenyatta led side Ushuru.
A source who spoke to Goal on Friday, said the deal could be sealed in the coming days.
"We wanted him to stay here but his mind is elsewhere. We have decided to release him and we understand they have given him a one year contract with an option of extending it."
Sony Sugar is currently bottom of the table with eleven points.