The fee for Davies could be set by a tribunal (Getty)

Derby County have signed 20-year-old forward Steve Davies from Tranmere on a three-year deal.

Davies is out of contract but because he is under the age of 24, a fee will be set by a tribunal, if the clubs cannot reach an agreement.

The Rams have already had an offer for the player rejected by Tranmere but the registration will now be confirmed while negotiations continue.

Davies is Derby's seventh signing of the close season to date.