The Spaniard, 42, was assistant to Garry Monk, who was sacked in June after 15 months with the club.

The former Oxford boss has led Blues to 15th in the table after 19 games.

"We have a clear vision of what our footballing philosophy needs to be and Pep and his staff have begun to implement that," said a club statement.

"Pep has shown his coaching expertise, man-management and leadership skills, allied to exemplary professional conduct, that can help take the club forward.

"We trust that our supporters will continue to get behind Pep, the coaching staff and the players, all of whom are passionate about bringing success to Birmingham City and have the club's interests at heart."

His permanent appointment comes just over a week after Monk, now Sheffield Wednesday manager, said he had made an "error of judgement" in working with Clotet.

Following Monk's sacking, the club said they were "not actively seeking" another manager after naming Clotet as caretaker, but he has now been appointed after steadying the club this season.

Having previously been assistant to Monk at Swansea City, Leeds United and Birmingham, Clotet had a brief spell as Oxford manager, before being sacked after seven months at the Kassam Stadium.