Leicester City have announced the signing of striker Demarai Gray from Birmingham City for an undisclosed fee, subject to his registration being approved by the Premier League and the FA.
Gray, 19, has signed a four-and-a-half year contract with the Foxes until June 2020, and is set to join up with Claudio Ranieri's first-team squad on Tuesday.
Sources confirmed to ESPN FC on Sunday that the Premier League hopefuls had triggered Gray's buy-out clause of £3.75 million, and the club have now confirmed a deal for the highly rated England under-20 international.
BREAKING: #lcfc sign winger @Demarai7 from Birmingham City. #GrayLCFC pic.twitter.com/Oz61oDPjQy
- Leicester City (@LCFC) January 4, 2016
Gray told his new club's official website: "It's been my dream to play in the Premier League since I started playing football so I'm very happy to join the club.
"It's a great club. The facilities are great and for a player like me it's an ideal place for me to improve. Meeting all the staff here, it seems like a nice family place, so I think that's perfect for me.
"You can see how well the team has been doing this year and I watch a lot of football so I can see that the way Leicester City play suits my style.
"I only hear good things about Leicester and I'm looking forward to starting."
A number of Premier League clubs had been tracking Gray with the England Under-20 international regarded as one of the best young talents in the country.
Leicester held a long-term interest in Gray and tried to sign him in the summer, only for the 19-year-old to remain at St Andrew's.
Gray was left out of the Birmingham squad for Saturday's clash with Brentford with Blues boss Gary Rowett confirming an unnamed club had activated his release clause.
The attacker's availability will be a boost to Ranieri, who is set to be without star striker Jamie Vardy for up to two weeks as the 28-year-old is scheduled to have "minor" surgery on a groin injury.