Birmingham have signed Coventry's 22-year-old centre-back Scott Dann for an undisclosed fee.
The England Under-21 international was also linked with Wolves who beat Birmingham to the Coca-Cola Championship title last season.
But Birmingham have won the battle for Dann's signature and describe the undisclosed fee as a club record for a defender.
Dann began his career with Walsall before moving to Coventry in January 2008, playing 49 times for the Sky Blues last season and scoring four goals.
One of those goals was the winner for Coventry against Birmingham at the Ricoh Arena.
Dann joins fellow new boys Stephen Carr and Christian Benitez at Birmingham.
Ecuador international striker Benitez was signed for a club record fee from Mexican outfit Santos Laguna.