Birmingham's acting chairman Peter Pannu hailed Chris Hughton as the "perfect candidate" after he was appointed as the club's new manager in succession to Alex McLeish.
Hughton has taken charge with immediate effect after agreeing terms and holding productive talks with Pannu. The 52-year-old has been appointed just 10 days after McLeish resigned before taking charge of Aston Villa.
In a statement, Birmingham said: "Following productive talks with Chris Hughton, acting chairman Peter Pannu felt he was the perfect candidate to take charge at St Andrew's.
"He is now looking forward to sharing the new man's ambition Pannu was particularly impressed by Hughton's vision and footballing theories of garnering youth and playing attractive and effective football."
Hughton edged ahead of Roberto Di Matteo in the battle to take charge of the Carling Cup holders.
Blues will be hoping he can repeat his achievement at Newcastle in steering them to promotion from the Championship two years ago.
Hughton has been out of football since parting company with the Magpies after a 3-1 defeat at West Brom in early December.
City's Hong-King based owner, Carson Yeung, ratified Hughton's arrival at St Andrew's.
It will be Yeung's first managerial appointment since taking control of Blues during the early part of the 2009-2010 campaign.
Yeung is looking for Blues to regain their Premier League status at the first attempt.
This was made clear to McLeish in a statement issued at the end of the season after defeat at Tottenham doomed them to relegation.
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