Fiorentina have announced that Manuel da Costa has joined West Ham United with forward Savio Nsereko heading in the opposite direction.
Skysports.com revealed on Sunday that a deal involving the duo was in the offing before the close of the transfer window.
And now the Serie A club have confirmed a swap agreement has been reached between the two sides.
Savio, 20, has struggled to make an impact in England since joining the Hammers from Brescia for £9million in January.
The addition of 23-year-old Da Costa, meanwhile, at Upton Park will serve as valuable defensive depth for the campaign ahead.
"This is a good deal for everyone concerned," West Ham chief executive Scott Duxbury told club's official website.
"Although not for the want of trying, Savio has struggled to make an impact for various reasons, while Manuel is also looking for a fresh start.
"We will continue to look at home and across Europe for the brightest prospects as they best fit our vision for this club's future.
"Had our financial situation been different we would have preferred to have kept and developed Savio.
"However, we are required to make savings and our policy has always been to sell players on the fringes rather than established first-team players.
"With the fee we received for Savio and 50% sell-on together with acquiring the highly-rated Da Costa, it represented a great deal."