Birmingham striker Walter Pandiani has completed his move to Espanyol for £1m after passing a medical, according to the Spanish club.
The Uruguay striker, who scored six goals in 35 appearances for the Blues, has signed a contract until 2008.
Birmingham have lost £2m on the fee they paid to land the player from Deportivo la Coruna after Pandiani initially the club joined on loan.
Pandiani had rejected a move to Real Mallorca earlier in January.
Birmingham boss Steve Bruce is likely to use the cash to make a bid for Charlton's Jason Euell, who he watched in action for the reserves on Monday.
Pandiani's departure follows the arrival of Chris Sutton from Celtic, which pushed him further down the pecking order at Birmingham.
"Walter is not a bad player and he did well recently against Manchester United and Chelsea which was commendable considering he knew we were looking to move him back to Spain," said Birmingham co-owner David Sullivan prior to the player's departure.
"You've got to take your hat off to his commitment towards the club and Walter has scored some important goals for us.
"But he hasn't quite fired as we thought he might and sometimes a change of environment does everyone good.
"It's not what any of us wanted but he has just not been able to adapt to the game in England as we expected."