Leicester City sign Demarai Gray from Birmingham City

Leicester have completed the signing of Demarai Gray from Birmingham on a four-and-a-half year contract.

Gray's omission from the Blues matchday squad for the 2-1 win over Brentford on Saturday sparked suggestions he would soon be leaving St Andrew's.

Claudio Ranieri says he's pleased Leicester have reached 40 points so early in the season after drawing 0-0 with Bournemouth

That has now been confirmed and Sky sources understand Leicester matched the £3.75m release clause in his contract to make him their first new signing of the January transfer window.

The 19-year-old had played in every Sky Bet Championship game this season until he was left out at the weekend and will now help with City's title push.

Gray has only scored once this season but already has a professional hat-trick to his name, after he scored three goals in the 6-1 thrashing of Reading in December 2014.

"It's been my dream to play in the Premier League since I started playing football so I'm very happy to join the club," he told the club's official website.

"It's a great club. The facilities are great and for a player like me it's an ideal place for me to improve. Meeting all the staff here, it seems like a nice family place, so I think that's perfect for me. 

"You can see how well the team has been doing this year and I watch a lot of football so I can see that the way Leicester City play suits my style. 

"[Claudio Ranieri] told me what he thinks of me personally, which is nice to hear and about future plans too, because clearly it's early stages of my career and I want to develop and reach the top.

"Working with Ranieri will help me develop and being in the Premier League now is just the step I've been waiting for.

"You can see how well the team has been doing this year and I watch a lot of football so I can see that the way Leicester City play suits my style.

"I think that definitely lured me to the club and the fact I know a few players like Ben Chilwell, so speaking to them has helped me make my decision. I only hear good things about Leicester and I'm looking forward to starting."