Steinsson signs for Bolton

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The 26-year-old full-back is Gary Megson's second signing at the Reebok Stadium after Tamir Cohen arrived recently.

Megson, who has money to spend following the £15million sale of Nicolas Anelka to Chelsea, told the club's website, bwfc.co.uk: "Gretar is a versatile footballer who will give us a number of options and strengthen the squad."

Steinsson, meanwhile, said: "It is the right move for me.

"I am looking forward to starting work with the players and contributing to the team."

Steinsson began his career at Akranes in his homeland before joining Young Boys in Switzerland, where he stayed for two years before a 2006 transfer to Dutch side AZ.

He had a trial with Bolton in 2002 after compatriot and Bolton legend Gudni Bergsson recommended him to then-manager Sam Allardyce.

Despite the trial being unsuccessful, Steinsson said: "I was here training five-and-a-half years ago with the team and I recognise a lot of players.

"I'm just glad because I've been waiting a long time to come here.

"I was really frustrated when I didn't get a contract five-and-a-half years ago. I've been waiting a long time to come over and now I'm here."