Birmingham have completed the permanent signing of Arsenal midfielder Sebastian Larsson in a £1million deal.
Larsson has impressed Blues boss Steve Bruce since signing on a season-long loan from the Gunners.
There was always a contingency plan for City to make the move permanent and Larsson has committed himself to St Andrews until the summer of 2011 after signing a four-year contract, which will commence when his loan deal expires at the end of the season.
The 21-year-old has shown his versatility by playing in a number of positions although he has been at his most effective on the right flank.
Larsson is hoping he can clinch a place in the Barclays Premiership with Birmingham by the end of the current season.
He said: 'It has been an important decision for me to make, and I am at that stage of my career now where I wanted to make the right decision - and believe I have.
'We had been in talks for a while, without either party forcing the issue, and I said that Birmingham was the club I wanted to sign for if I was leaving Arsenal.
'I have been really enjoying my football here and hope I can play a part in getting us promoted. We are in a good position, and the club and all the players want to push on now.
'Everyone wants to play at the highest, and the style of play might suit me more in the Premiership.'
Bruce said: 'I am delighted to acquire the services of Sebastian. When I set about rebuilding the side in the summer I wanted to bring in people who were hungry and had energy - and he fitted that category.
'Of course, like all young players, there have been ups and downs - and don't forget this has been Sebastian's first extended taste of first-team football.
'But overall I have been delighted with him. He has played in a number of positions and has been improving all the time.'
Birmingham also signed winger Pat Kavanagh on a six-month contract today.
The 21-year-old right-sided midfielder had been on trial and made two appearances for City's reserve side.
Kavanagh was a free agent, after parting company with Irish side University College of Dublin in November.