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Swansea boss Roberto Martinez said soon after the loan started that he wanted to sign him permanently and they deal was done with crisis club Southampton today.
It sees Dyer become a Swansea player in a £400,000 transfer and after signing a three year deal he said: "I want to play Premiership football and I want to get there with Swansea.
"We just missed out on the play offs last time around, which was unfortunate, yet still an achievement in itself considering the club just came up from League One. But I think we can go that one step further next season and finish in a higher position."