Figueroa cost £2.5m
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Argentine striker Luciano Figueroa has agreed to join Birmingham on a five-year contract.
The 22-year-old passed a medical and has agreed personal terms after discussions at St Andrews with managing director Karren Brady.
"I am very excited at the prospect of playing in the English Premiership with Birmingham City," he told the club's website.
"I was very impressed with the ground and the whole set-up and I am looking forward to playing my first game at St. Andrews."
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The other signing we are looking at is a new goalkeeper
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The club had already agreed a fee of £2.5m with Figueroa's club Rosario Central.
Figueroa finished as top scorer in Argentina's top league last season clocking up an impressive tally of 17 goals in 19 games.
He has been described as the 'new Gabriel Batistuta' and lived up to his reputation with five goals against Boca Juniors in his final game for Rosario in July.
Blues boss Steve Bruce, who is in Kuala Lumpur for the FA Premier League Asia Cup, is confident the former Rangers target can make the grade.
"He is young, 22, he's just broken into the Argentina national team. He was the top scorer in Argentina last year," said Bruce.
"We believe for the price we have got a very, very good player."
Figueroa is to return to Argentina while awaiting international clearance before joining up with his new team-mates on 1 August.
Bruce also revealed Birmingham are "a long way down the line" in negotiations with two goalkeepers and that club managing director Karen Brady is conducting talks while the team are away.
"The other signing we are looking at is a new goalkeeper," he said.
"We are in discussions with a couple of goalkeepers as we speak. We are hoping that we will make headway on both of them. I have left Karen at home to do those sort of things.
"We are down the line with two goalkeepers and we will see what develops at the end of Wednesday."