Colchester United have confirmed they have sold 22-year-old utility man Greg Halford to Reading.
BBC Essex understands the U's will receive a record fee for the England under-20 international.
Their previous record was the £2.25M received from Newcastle for Lomana Tresor Lua Lua.
Colchester assistant manager Mick Harford told BBC Essex: "Greg has showed tremendous attitude this season, he'll be a prime asset for Reading."
Royals director of football Nick Hammond told the club website: "I am extremely pleased with this signing - we have beaten off competition from a number of clubs to bring Greg to Reading.
"He is an outstanding talent and a typical 'Reading' signing - young, hungry and with the ability to become an even better player than he already is.
The U's had already turned down offers from Sheffield United for Halford, who came through the youth academy ranks at Layer Road.
Manager Geraint Williams admitted in early January that he was resigned to losing Halford - by the summer, when his contract expires, at the latest.
"It's a good deal for both clubs and it's a good deal for Greg," added Harford.
"We couldn't turn down the offer because Greg is out of contract at the end of the season."
Linear Mode
