Birmingham City have signed Chelsea striker Mikael Forssell in a deal worth £3 million.

Forsell has spent the last two seasons on loan at St Andrews, although his second loan spell was ruined by a serious knee injury which saw him sidelined for six months.

The 24-year-old has now returned to full fitness and Birmingham have won the race to sign him.

Everton had also been interested and held talks last week, but it is reported that they were unhappy with the results of a scan on his damaged knee.

Forssell has also had spells with Crystal Palace (twice) and Borussia Monchengladbach before he joined Birmingham.