Stoke City have signed Jack Butland from Birmingham City for £4m, with the 19-year-old goalkeeper, who made his full England debut in August, returning to St Andrew's on loan for the remainder of the season as part of the deal.

Butland became Stoke's second capture of deadline night, after they had brought in the United States winger Brek Shea from FC Dallas for £2.5m.

Butland has attracted interest from a number of Premier League clubs, including Chelsea, Southampton and Fulham, but he was determined to continue playing first-team football and is confident he will get that chance at Stoke.

Although Asmir Begovic is the No1 at Stoke, leading Premier League clubs have been tracking the Bosnian and it looks increasingly likely that he will depart in the summer. Should that be the case, Butland would be expected to be given an opportunity to stake his claim for a regular starting place at the Britannia Stadium.

Butland said: "It's been an incredible day – a very exciting one, but I'm glad it's finished. I love playing and I don't want to sit on the bench. For me it was important I went to a club where I can play and develop my game."

Of his return to Birmingham on loan Butland said: "I've got unfinished business there and I want to help them this season. They have been very good to me."

Chelsea made an inquiry for Butland but the European champions' interest failed to materialise into a formal offer, with the teenager making it clear that he had no desire to move to Stamford Bridge and sit on the bench. Butland has been an ever-present for Birmingham this season and believes his development has been greatly helped by playing first-team football at such a young age.

He represented Team GB in the Olympics and has impressed Roy Hodgson, the England manager, with his maturity as well as his ability. Butland was called up to the England squad for Euro 2012 after the third-choice goalkeeper John Ruddy broke a finger. Hodgson has named Butland in the England squad for the Brazil friendly on Wednesday.

Birmingham were keen to sell Butland because of their parlous financial position. They turned down a £6m offer from Southampton in the summer but their bargaining power was severely reduced. It is believed Stoke are paying a significant part of the £4m fee up front, which will help tide Birmingham over in the short term. Stoke may also include a couple of loan players as part of the deal.

Shea has signed a four-and-a-half-year contract at the Britannia Stadium after being granted a work permit.

Stoke's manager, Tony Pulis, told the club's website: "Brek is a very, very exciting player, and one who we firmly believe could go on to become an outstanding player for this football club. He has terrific pace, a very good left foot and is capable of scoring goals. He has all the tools needed to be a success here."

Rory Delap has agreed a loan move to Barnsley until the end of the season.