John Mousinho adds 20-year-old A-League defender to his Championship squad.
Matthews arrives at Portsmouth for an undisclosed fee, subject to international clearance.
A 4-and-a-half year deal has been agreed for the young defender, who joins the club from Sydney FC in the Australian A-League.
He becomes the 2nd Australian to join the Blues this transfer window after Tom Waddingham and the 4th in the squad overall (Jacob Farrell and Kusini Yengi).
Matthews is a 6' 5", right-footed centre-back who had made his senior debut for hometown club Sydney FC just last January, making an immediate impression by coming off the bench and helping to keep a clean sheet in a 4-0 victory over Newcastle Jets. He had been with The Sky Blues since the age of 12.
The defender has also recently made his international debut, featuring in the Socceroos' World Cup Qualifying stalemate with Bahrain in November - A game which saw Yengi score twice in.
In the official Portsmouth Football Club statement announcing the signing, head coach John Mousinho said: "He's a really promising young centre-back and player that we've been tracking for quite some time.
"There wasn't the opportunity to bring him over here in the summer, so we're delighted that he's been able to join us now.
"Hayden is someone with a huge a huge amount of potential, but he's already played a lot of first team games in a short amount of time.
"He's 6' 5", but is also very mobile and doesn't just rely on his height. There's a real physicality there, while he's calm and composed with the ball at his feet."
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