Derby County have reported the signing of Tranmere winger Steve Davies on a three year contract.

With his existing deal ending on June 30 2008, for over a year the Club have repeatedly attempted to persuade the 20-year old to sign a new contract, increasing their offer several times - even throughout his injury.

Davies refused all offers throughout the season, made clear his desire to leave and was unwilling to enter into negotiations.

The Club's best offer would have put him in the top bracket of earners at Tranmere and was one of the best offers ever made to a player under the age of 21.

However, Tranmere Rovers has learned through media reports that Davies has now signed for Derby County. The player has not been in touch with the Club to confirm the position.

Tranmere Rovers received an offer from Derby on 21 May which was unacceptable and was rejected.

Last season Leeds United made an offer for Davies of £500,000. Other Championship clubs have expressed interest at a similar level. Derby's offer is not comparable.

If a fee cannot be agreed between the two clubs, Tranmere will take the matter to a tribunal. Derby County will then be forced to pay the sum determined by the tribunal.

Davies joined Tranmere at the age of 15 from Liverpool's Academy where he had spent the previous six years. He spent two seasons in the Youth Team and Reserves at Tranmere where he was regularly on the scoresheet. He signed a professional contract in the summer of 2005 following impressive displays in pre-season.

He showed great promise throughout 2006-07 and his sensational form in pre-season last summer earned rave reviews from opposition players and managers. He was named by former Leicester City manager Ian Holloway as the fourth best player playing in the Football League and Scotland last July.

Davies started the first ten games of the 2007-08 season and scored twice before suffering a cruciate knee ligament injury. Though he was expected to miss the rest of the season, the Club's medical team helped him return to action fully recovered and back to full fitness earlier than anticipated for the last month of the season with appearances against Nottingham Forest and Northampton Town.

Manager Ronnie Moore said: "We would have loved Steve to have stayed at Prenton Park as he has massive potential.

"We put a lot of faith in him last summer when we allowed Kevin Ellison to leave so Steve could get more first team football.

"In pre-season he looked capable of being one of the best players in the Football League and he was in excellent form in the opening stages of the season.

"We made him some great offers, but there is only so much we can do to try to keep a player at the Club, and ultimately the decision was his.

"We are disappointed about the way this has been handled by the player and Derby but no doubt this will come out in the tribunal. Given other clubs' independent valuations of the player we are confident this will be reflected in the tribunal decision."