The 17-year-old had a week-long trial with the Hammers last season.

"I am really happy to sign for West Ham," he told the club's official website after his first day at training with his new team-mates on Friday.

"I have heard of many good players that have come from the club's academy. When I was on trial in February I really enjoyed the tempo and style of training and it helped me take my talent to the next level.

"It is obviously very scary to move away from my family but it is my dream to play in England and what I have always wanted to do so that outweighs any apprehension I had about moving here. Playing for the (Iceland) Under-21s has been the best experience for me and I am so grateful to the coach for giving me that opportunity as it has helped me develop my game so much quicker. I am sure that is part of the reason West Ham signed me."

Meanwhile 18-year-old Czech goalkeeper Marek Stech has signed a new five-year contract.