Danns struggled to hold down a first-team place at Birmingham
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Crystal Palace have signed midfielder Neil Danns from Birmingham for an initial fee of £600,000.
He has agreed a three-and-a-half-year contract and the eventual fee for the 25-year-old could rise to £850,000 if certain clauses are met.
Danns became surplus to requirements under Birmingham manager Alex McLeish.
McLeish said: "Neil is a guy who, at this stage of his career, should be getting first-team football and we wish him all the best."
Danns joined Birmingham from Colchester for £500,000 in the summer of 2006 but started only 11 league games for the club.
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