Burnley have signed Iceland midfielder Johann Berg Gudmundsson from Charlton, the newly promoted Premier League club confirmed on Tuesday.

Gudmundsson agreed a three-year contract with the option of a further year and becomes Burnley's first signing since winning promotion back to the English top-flight last season.

The 25-year-old started every game for Iceland during their fairytale run to the Euro 2016 quarter-final, which included a stunning last 16 upset of England.

Gudmundsson had spent two seasons with Charlton, who were relegated from the Championship last term.

Despite Charlton's demotion, Gudmundsson had the joint most assists in the Championship and fits the bill for Burnley bos Sean Dyche, who has been looking to add more creativity to his midfield.

"Johann, we feel, is a quality player who we saw last season playing at Charlton in a tough time and we liked the quality he showed," Dyche told Burnley's website.

"It helps to see a player in the European Championships with that kind of company and he did well there."

Gudmundsson, reported to have cost £2.5 million ($3.2 million, 2.9 million euros), added: "It's fantastic to be here, it's a club that's shown a lot of interest in me.

"It was a good season for myself, unfortunately not for Charlton, and then we had a good Euros for Iceland."