Former Blues midfielder Grant Ward has joined Blackpool on an 18-month contract with the Seasiders having an option for a further season.
Ward, 25, was released by Town at the end of last season but has remained with the Blues as he recovered from the ACL injury he suffered at QPR on Boxing Day last year with clubs obliged to get players fit before they depart.
Despite the former Tottenham man appearing in a couple of recent U23s games Blues boss Paul Lambert poured cold water on suggestions that he would re-sign Ward.
"I’ve spoken to the manager and the owner and they’ve welcomed me with open arms,” Ward, who was linked with a return to his former loan club Rotherham earlier in the season, told the Blackpool official site.
"I’m coming to a team that wants to progress and the owner wants the area to do well. I’m excited to be part of it.”
Blackpool manager Simon Grayson said: "I’m delighted that we’ve been able to bring Grant in.
"He’s a player with proven Championship experience and he offers versatility in those attacking positions, both centrally and wide.
"I’ve spoken to a number of people in the game about him, including Mick McCarthy, and they all speak highly of him.
"The move is a sign of our intent to do business early in the transfer window as we look to strengthen and keep improving the squad.”
Tangerines chief executive Ben Mansford added: "We are delighted to have signed Grant. There was a lot of competition for his signature.
"I trust the fact that Grant chose Blackpool shows that we are firmly back in terms of attracting some of the best talent for this league, as well as evidencing the ambition and intent that [new Blackpool owner] Simon Sadler has brought to the club.
"Grant is a young man with his best years ahead of him, who comes having had a good upbringing at Tottenham and proven experience of League One and in particular the Championship.
"Grant’s aspiration to be playing back in the Championship matches ours. Grant will add competition to the squad and this signing will start off our winter recruitment plans. Welcome Grant.”
The Blues signed Ward from Tottenham Hotspur where he had come through their academy for a fee understood to be £500,000 in the summer of 2016.
The Londoner made a dramatic impact when he scored a debut hat-trick in the opening day 4-2 victory over Barnsley at Portman Road which included a goal with his first touch for Town.
In total, Ward made 75 starts and 23 sub appearances for the Blues, scoring eight goals.