Southampton have signed midfielder Victor Wanyama from Celtic for a club record fee of £12.5million

After overcoming an apparent impasse in discussions, the highly-rated 22-year-old has put pen to paper on a four-year deal at St Mary's.

Wanyama's price surpasses the £12million they spent on Bologna's Gaston Ramirez last summer.

Wanyama's move therefore dwarfs the £9.5million that Celtic received for Aiden McGeady three years ago from Spartak Moscow.

It is now the largest fee ever paid in Scottish football, breaking Rangers' long-standing record £12million outlay for Tore Andre Flo.

Wanyama had been with Celtic for two years, having arrived as a relative unknown from Belgian side Beerschot.

Wanyama shone for the Glasgow giants and his Champions League performances saw his stock rise markedly, leading to reported interest from Liverpool, Arsenal, Everton and Cardiff.

Manager Mauricio Pochettino was delighted to welcome Wanyama to the club.

Mauricio Pochettino: "I am very pleased to have secured the signing of Victor because we are a big admirer of his talents." #saintsfc

— Southampton FC (@SouthamptonFC) July 11, 2013

"I want to stress that the deal could have been done sooner, but this shows that we do business on our terms."

"The most important thing is that ourselves, Celtic and the player are all happy with the way it has all gone."

"The fact that a lot of top European clubs were also keen to sign him shows what an attractive prospect Southampton Football Club is to a player who had his pick of the teams in England and abroad.

"I've watched him perform at the top level in the Champions League, and I believe that he will be a valuable addition to our Premier League squad for the season ahead."