The League One club, who were relegated last term, have signed Brighton midfielder Marc Leonard.
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The 22-year-old had spent the past two seasons on loan at Northampton Town.
"I felt like the time was right," Leonard told BluesTV.
"And I knew that Blues was the club that I wanted to play for so I really pushed for the deal to go through.
"Based on where I am in my career and where Birmingham are trying to get to, I just felt like the ambition of this club really matched my own."