Nolberto Solano has joined Aston Villa in a £1.5m move from Newcastle.
Solano has agreed a two-and-a-half-year deal with the Midlands outfit.
Villa had an initial offer of around £1m for the 29-year-old Peruvian international winger rejected.
But Villa boss David O'Leary was successful at the second attempt and makes his first signing during the January transfer window.
O'Leary said: "I've got to be grateful to a few people in being able to complete this signing at this stage.
"I would like to pay tribute to the chairman for the way he has allowed a bit
of the money I should have been getting in the summer to be released now.
"But also Nolberto was on a really good package at Newcastle and has forgone
that to come to us and what we can afford to pay him.
"He has taken a significant cut and it is never something I thought I would
say about a player in this day and age.
"It is very refreshing but shows how much he wanted to come here after he
felt his chances at Newcastle were limited.
"He has been a pain in the backside to me as an opposition player down the years and I'm now just delighted to have him in my side."
Solano was a popular figure with Magpies fans, but has had his share of problems with Newcastle boss Sir Bobby Robson this season.
He moved to St James' Park in August 1998 from Boca Juniors in a £2.5m move and started over 200 games for the club since then.
He was reported to have walked out on the Premiership club after being left out of the squad for the north-east derby against Middlesbrough early this season.
But Robson said he let the player move on reluctantly.
"Nobby is a fine player, and I'm sorry to see him leave," Robson told Newcastle's website.
"I've been here for four-and-a-half years now and he's been a blue chip player for me during that time.
"I wish him well and hope he has a good career with Aston Villa."