Scott Brown last night secured a £4.4m summer transfer to Celtic. The Hibernian midfielder completed a medical examination at an Edinburgh hospital before agreeing a five-year contract that could earn him in excess of £6m in wages.

It ends months of speculation regarding his future whereabouts and confirms the financial chasm that exists between Celtic and Rangers. Brown was expected to reunite with his former midfield partner, Kevin Thomson, at Ibrox and had even shaken hands and given a verbal assurance on a deal until Hibernian upped the ante.

Rod Petrie, the Hibs chairman, accepted three bids for his club's prized asset - understood to have been Celtic, Middlesbrough and Everton - but after days of negotiations between Peter Lawwell, the Celtic chief executive, and the player's agent, Willie McKay, Brown opted to join the Bank of Scotland Premierleague champions. It is understood Brown rejected more lucrative personal terms elsewhere to join Gordon Strachan's team.

"A deal has been done and dusted," said McKay last night. "It is a five-year deal and Scott is very pleased with the move. He is delighted to be joining such a big club as Celtic and to have the opportunity of playing in the Champions League."

Brown represents the high-profile replacement for Neil Lennon the supporters craved and fits in to the more dynamic approach to which Gordon Strachan alluded in recent weeks after admitting Celtic had failed to entertain as consistently as last season.

The Scotland internationalist was voted young player of the year by the Scottish Football Writers' Association at a dinner in Glasgow on Sunday and will now earn around 12 times his £2000-per-week deal at Easter Road.

With the midfield dynamo secured before the window opens for official business, Celtic will now focus their attention on securing the two other high-calibre players pledged by Lawwell.

Strachan is keen to find a reputable partner for this season's top goalscorer, Jan Vennegoor of Hesselink, and is also surveying the market for an attacking midfielder, after Jiri Jarosik's failure to make an impact. Jarosik himself has also expressed a desire to leave after an unsatisfactory season.

It is also understood cover at right-back is another priority, after Mark Wilson's first full season at the club was hampered by injury.

Jean-Joel Perrier-Doumbe, another of McKay's clients, has featured fleetingly in the first team, but The Herald understands he is unlikely to be offered a long-term deal at Parkhead and has been offered to clubs in England.

Celtic have wasted little time in spending a portion of their record £17.9m half-term results. The outlay will be offset by departures of some high earners who have not contributed as expected. Sunderland have retained an interest in Thomas Gravesen, but The Herald understands FC Copenhagen have decided against inviting the former Danish internationalist home due to his suspect temperament. The 31-year-old still has three years of his contract remaining and may prove difficult to move on if offers do not match his £40,000-per-week wages at Celtic.

Bobo Balde has been an expensive patient this season, having suffered an abdominal injury last summer and a broken leg mid-season. Martin O'Neill is reported to be considering a move for a third Celtic player, having already signed Shaun Maloney and Stilian Petrov. However, Celtic have resisted an enquiry from Tottenham Hotspur regarding the availability of Scotland's player of the year, Shunsuke Nakamura, and are unwilling to entertain any further offers for him despite significant interest from a number of clubs.

The club's signing of Brown has put pressure on Rangers to enhance their squad. Walter Smith has secured Alan Gow, Kirk Broadfoot and Jean-Claude Darcheville on Bosman transfers and will sign Lee McCulloch next month.

Wigan rejected Rangers' offer in January, but will accept around £1m for the Scotland internationalist. The departure of Paul Jewell as Wigan manager has delayed negotiations, but the deal should be concluded after the European Championship qualifier against the Faroe Islands on June 6.

Rangers have been linked with Pascal Feinduono, the St Etienne striker who played with Darcheville at Bordeaux, but have distanced themselves from the speculation.

Reports that they are set to sign Robbie Fowler are premature. "There have been no developments and nothing will be decided until after the Champions League final," said his advisor George Scott.

Scott Brown factfile 1985 Born Dunfermline, June 25.

2002 Signs for Hibernian 2003 Makes his first team debut in a 3-1 win over Aberdeen in May. 2004 Plays in the CIS Insurance Cup final 2-0 defeat to Livingston.

2005 Earns his first Scotland cap in a 1-1 friendly draw with the United States in November.

2006 Suffers a fractured fibula in February before signing a new long-term contract in March. Hands in an official transfer request to Hibs in December.

2007 Retracts transfer request in January, helps Hibs win the CIS Cup and makes his Scotland debut against Georgia in March.

Voted Young Scottish Player of the Year in May before his agent confirms he has agreed a summer move to Celtic.