Birmingham have signed Liverpool striker Emile Heskey for an initial fee of £3.5m, which could rise to £6.25m.
The striker who is in England's squad for Euro 2004, has put pen to paper on a five-year contract at St Andrews.
Heskey, 26, was Liverpool's record signing when he joined from Leicester in 2000 for £11m, and he scored 60 goals in 277 appearances for the Reds.
Birmingham boss Steve Bruce said: "This is an absolutely fantastic signing for the club - I am really excited."
Birmingham already have Mikael Forssell on another year's loan from Chelsea, and he should form a strike partnership with Heskey next season.
Leicester's Muzzy Izzet is being lined up on a Bosman free transfer - which would reunite the midfielder with ex-Foxes team-mates Heskey and Robbie Savage.
Chelsea winger Jesper Gronkjaer is also a target - with Bruce promising to get most of his transfer market work done before his squad returns to pre-season training.
Speaking to the club's website, Bruce added: "Emile is still only 26 years old, has 40 England caps to his name and will be representing his country at Euro 2004.
"To pull off a signing like this is quite remarkable and I am really excited to add Emile to the squad for next season.
"Hopefully, he will be the first of several high-profile signings that we will be making this summer."
Republic of Ireland frontman Clinton Morrison - who partnered Forssell up front this season - expects to lose his place to Heskey.
"I think at the start it will be Heskey and Mikael because Mikael's had a great season and the club have paid a lot of money for Heskey," he said.
"But you've got to fight for your position and there will be a lot of competition for places here next season.
"Emile is a big man, he can lead the line, that's the job he does well and that's why he plays for England. He's a tremendous talent and he will do very well for Birmingham."