Laird made 10 appearances during his recent loan spell at Port Vale

The 21-year-old, who had not played for City's first team, has put pen to paper on a deal keeping him at the New Den until the summer of 2010.

"Millwall are a big club," Laird, who was also a target for Port Vale, told the Lions' website.

"Having worked with Kenny Jackett at Manchester City, I know they will be successful with him as manager and I want to be part of that."

Laird recently completed a 10-game loan spell at Vale where he was the first signing made by new Vale boss Lee Sinnott, who had hoped to capture him on a permanent basis.