Derby County have confirmed the signing of Paul Coutts from Preston North End after the two clubs agreed an undisclosed fee.

The versatile midfielder has signed a three-year deal with the Rams, who are believed to have beaten off interest from several Championship clubs for the former Scotland Under-21 international.

"We are delighted to secure the services of Paul as he is someone who has been on our radar for some time," manager Nigel Clough told the club's official website.

"He is still young but he knows the division well from his time at Peterborough and Preston and we're all really looking forward to working with him."

The 23-year-old becomes Clough's second signing of the transfer window after another youngster, Michael Jacobs, moved to Pride Park.