Regarded by many as among the most talented young footballers in Scotland, the 19-year-old right-sided midfielder has signed a three-year deal at Turf Moor for a fee that could total £500,000, including add-ons and incentives.

McDonald, a former Scotland Under 19 and current Scotland Under 21 international, was last year voted player of the year at Dundee, where he scored 11 goals.

At the end of a successful 2007/08 campaign that took his appearance tally into treble figures, he was also shortlisted for Scotland's prestigious SPL Young Player of the Year and First Division Player of the Year awards.

Clarets boss Owen Coyle said: "I have known Kevin since he made his debut at 16, when he played against my teams.

"I couldn't have been any more impressed by a young man who has developed each year into a fine footballer.

"He has progressed to such an extent that we felt we wouldn't get him at one point. There were some big, big clubs courting his services, with Celtic and Everton among them, which Dundee had turned down offers at various stages.

"Again last year he took his game on and scored plenty of goals from midfield. He is 6ft 3in, mobile, has a great physique and we feel we can make him even better in a good Burnley team for years to come."

Coyle, who has followed up the capture of Martin Paterson with another exciting young prospect, added: "We have wanted to get younger players in and Kevin ticked every box we were looking at and we are excited to be working with him.

"I have to say he had other offers, but I sat down with Kevin, his parents and representative and they were very much on board that Burnley is the right club for him.

"Echoing what Martin Paterson said, he felt it was the right club and we are genuinely excited to have signed such a young talent.

"I think the Burnley fans will identify with him and we hope he goes on to have a successful career with Burnley."

Born in Carnoustie, McDonald progressed through the ranks at Dens Park, making his debut in 2005 as a 16-year-old.

In June 2006, Dundee turned down an offer from Scottish champions Celtic for the youngster, who insisted he was happy to further his career with Dundee.

After being the subject of further enquiries from Glasgow Rangers, Everton and Tottenham Hotspur, he was crowned Irn Bru young player of the month in Scotland in October 2006.

A year later, in September 2007, he again won the award and three months later signed a contract extension at Dundee intended to warn off would-be suitors.

In March 2008, the Scottish starlet again hit the headlines with the winning goal for his country's Under 21 side in the 2-1 European qualifying win over Finland at Pittodrie.

Dundee manager Alex Rae this summer admitted his current player of the year could leave Dens Park if an acceptable bid was received.

And Coyle has now got his man at the second time of asking, after an earlier six-figure bid was rejected.

McDonald will wear the number seven shirt at Turf Moor.

For more from Coyle, plus an interview with Burnley's latest signing Kevin McDonald, see Friday's Burnley Express.