Diego Fabbrini has left Watford to join Birmingham City on a permanent deal for £1.5m.
The Blues confirmed on their official website on Wednesday that the Italian midfielder, who spent a brief loan spell at St Andrew's last year, has signed a three-and-a-half-year deal.
Fabbrini, who made five appearances for Birmingham during his loan stint, joined Watford from Udinese in 2013, but was shipped out to Siena, Millwall and Middlesbrough on temporary spells.
Birmingham, who are seventh in the league table, have given Fabbrini the number seven shirt.
