Tottenham Hotspur have won the race to sign Gylfi Sigurdsson.
The Icelandic midfielder becomes new Spurs head coach Andre Villas-Boas' first signing since arriving at White Hart Lane.
The new Spurs boss only joined the north London club yesterday, but the signing of Sigurdsson has already been confirmed, and the move is Spurs' first signing of the summer.
A statement on Tottenham Hotspur's official website said: "We are delighted to announce that we have completed the transfer of Gylfi Sigurdsson from Hoffenheim."
The Iceland international joined Hoffenheim in 2010, but failed to settle in Germany, and the creative midfielder spent the second half of last season on loan at Swansea.
Sigurdsson immediately took to the Premier League, scoring seven goals in 19 appearances, picking up the Barclay's Player of the Month award for March in the process.
And Swansea were originally the front-runners to sign the player, but after Swans boss Brendan Rodgers switched to Liverpool, a move to Anfield looked to be on the cards.
But Sigurdsson will not be joining up with his former manager on Merseyside, and instead becomes Andre Villas-Boas first Tottenham signing.
Tottenham are Sigurdsson's third club in England. The former-Hoffenheim player had a successful spell with Reading before joining the Bundeliga team, winning the club's Player of the Year award in his only full season at the Madejski Stadium.
And Sigurdsson's signing is more good news for Spurs fans, after Gareth Bale committed his future to the club by signing a new four-year deal earlier last week.