Last Updated: Fri, 29 Jan 2010 14:31
Birmingham have allowed Martin Taylor to join Watford on a free transfer, while Gary McSheffrey has joined Leeds United on loan.
Watford boss Malky Mackay swooped to sign 30-year-old defender Taylor on a free transfer from the Blues after the player spent six years at St Andrews. The former Blackburn man, who was due to fall out of contract with City in the summer, has signed a deal to keep him with the Hornets until 2012.
Meanwhile Leeds boss Simon Grayson has signed McSheffrey on loan until the end of the season.
Grayson has been on the look out for new faces to bolster his stuttering promotion push and the arrival of the Blues striker will be a major boost to the club.
The 27-year-old joined Birmingham in a £4million deal from Coventry in 2006 and has scored 20 goals in 94 appearances for the Blues but has found first team opportunities difficult to come by this season.