Fabrizio Romano confirmed the fee as Sassuolo triggered the clause included in the original loan agreement, which had been struck last summer after Muric fell out of favour under Kieran McKenna following Ipswich's relegation from the Premier League.
Muric joined Ipswich from Burnley for £10 million in July 2024 as part of the club's preparations for their first top-flight season in 22 years. He was in and out of the side throughout a difficult campaign and was ultimately displaced as first choice. Ipswich were relegated at the end of 2024-25, and the 27-year-old moved to Italy on loan to rebuild.
He made 32 appearances for Sassuolo in Serie A and kept six clean sheets as the Emilian club finished 11th in the table. His performances, including a penalty save against Juventus's Manuel Locatelli in March, persuaded the club to activate their purchase option.
In February, Muric had publicly stated he did not intend to stay at Sassuolo for personal reasons. That position has since reversed. The exact details of what changed his mind have not been disclosed, though reports have suggested the arrival of a new coach and improved contractual terms played a part.
Ipswich, who won promotion back to the Premier League by finishing second in the Championship this season, will receive the €7 million fee as they prepare for their return to the top flight. McKenna will now need to recruit a new first-choice goalkeeper before the new season begins.
Muric came through Manchester City's academy before loan spells at NAC Breda, Nottingham Forest and Girona, and then a permanent move to Burnley where he won the Championship title in 2022-23.