STEVE McClaren believes Cyrus Christie is joining Derby County at a key stage of his career.
The 21-year-old right-back has arrived from Coventry City and signed a three-year deal with the Rams.
He was out of contract with the Sky Blues, who are due compensation.
The two clubs have agreed an undisclosed fee.
"We have been monitoring Cyrus for some time," said McClaren. "There has been a great deal of competition for his signature and we are delighted that he has chosen Derby County for this key stage of his career.
"Cyrus fits the profile of young, talented players that we have identified and I am really looking forward to working with him.
"Our head of football operations, Chris Evans, and his recruitment team deserve a lot of credit for closing this deal. We have signed some very good players this summer and Cyrus is another excellent capture."
One of the McClaren's priorities this summer was to strengthen the right-back position after Andre Wisdom returned to Liverpool at the end of last season following a successful loan spell.
Wisdom's departure left the Rams with one recognised right-back in Kieron Freeman before Christie's arrival.
Christie made 116 appearances for Coventry, including 37 in the Championship, after making his debut at the age of 17 in August 2010.
Rams first-team coach Paul Simpson describes Christie as a "very promising" right-back and Derby see the player as a "contender" for the position in the first team.
"He is still only young and has played around 120 games for Coventry, some in the Championship, and has done very well," said Simpson.
"We are a little bit short in that area and he is somebody we think we can develop and make into an even better player.
"He will be a contender for the first team, he will be pushing for first-team football."
Coventry's development director, Steve Waggott, said there had been various bits of interest in Christie from different clubs, both League One and Championship.
"There have been discussions about Cyrus going to the MLS but, just in my opinion, I think he needs to stay in the UK for the sake of his career," said Waggott.