Richard Chaplow has joined Preston North End from West Brom on a three-and-half-year contract.
The 22-year-old has found regular first-team football hard to come by since moving to The Hawthornes two years ago and Championship side Burnley were strongly linked with a January move for the midfielder.
However, Preston have beaten their rivals to Chaplow's signature and have signed the former England Under 21 in a deal that could eventually be worth £1.35million.
The deal includes an initial payment of £800,000, with a further £550,000 payable based on a variety of performance criteria.
West Brom have also inserted a 20 per cent sell-on clause on any future sale, while Preston have the option of extending Chaplow's contract by a further year.
Meanwhile, Preston manager Alan Irvine has spoken of his hope at bringing Blackburn's Paul Gallagher back to Deepdale for a second time.
"Mark (Hughes) and I have agreed that we'll keep an eye on the situation and see whether it is possible to bring him back," he said on the club's official website.