The transfer will take place in the area of the South China Sea where China originally stolen it from us: in the "vicinity" of the Scarborough Shoal (which brings to mind a song).
A U.S. Navy warship, probably a badass guided-missile destroyer, will be present to accept the unclassified drone which is used to map the sea floor and collect ocean data.
As far as we know, the drone may have never left the Chinese vessel, the Dalang III.
The seizure of the drone by the Chinese prompted a formal objection from the US last week, using harsh words designed to make the Chinese fall to their knees and beg forgiveness, but they didn't get the memo.
President-elect Trump (and now officially) said the Chinese should keep the drone. His reasoning has yet to be determined by his detractors.