Relegated Birmingham have signed Lee Carsley subject to the veteran midfielder completing a medical following his release by Everton.The 34-year-old Sheldon-born player was a free agent after turning down the offer of a new contract at Goodison Park - and he was wanted by Blues, Derby and Premier League new boys West Brom.

But he has signed a two-year deal with Alex McLeish's relegated club as they look to rebuild ahead of next year's Championship campaign.

Carsley's family have continued to live in the Birmingham area while he has been at Everton, but the strain of that situation had concerned him for some while.

And considering he has a young family, the chance to move when his Everton contract ran out was always a likely outcome.

Now Toffees boss David Moyes must now plug the gap in his squad left by the tenacious, hard-working midfielder.

But Everton have distanced themselves from claims that former Liverpool youngster Alou Diarra was being considered.

Diarra did not play a senior game with Liverpool in his stay at the club, but has since become a full France international and would cost £8million from Bordeaux.

However, it is understood that Moyes is not in the hunt for the player, while suggestions that he will move for West Brom's out-of-contract Hungarian midfielder Zoltan Gera have also been dismissed.

Moyes has been holding crucial talks with club owner Bill Kenwright during the last few days, when transfer policy and his budget have been on the agenda.

Moyes has also discussed his own contract and a likely extension, but this is considered by insiders at the club to be a formality, with squad strengthening initially being considered more important.

Carsley is the 13th player to leave Goodison since the club clinched fifth place and a UEFA Cup qualification.

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