The Blades made the first move for the 22-year-old earlier this week.
They thought they were in pole position to land the attacker after having their bid accepted.
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However, Boro have now joined the race for the ace and are attempting to persuade him to stay in the north east.
Fellow Championship sides Wolves, QPR and Fulham have also been monitoring his progress.
Thomas scored nine goals for Hartlepool despite their terrible campaign in League Two.
He was on the books of both Newcastle and Sunderland as a teenager.
Middlesbrough are now in the driving seat to sign Nathan ThomasPA:Press AssociationNathan Thomas has scored nine goals for Hartlepool despite their struggle against relegationRex FeaturesLuxembourg star Enes Mahmutovic has been handed a week-long trial at MiddlesbroughGetty Images
Since then he has gone on to play for Darlington, Plymouth, Motherwell and Mansfield.
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