The 23-year-old will be joining the blue army on loan for the remainder of the season.
Viv Soloman-Otabor follows Andy Cannon, Bryn Morris, Omar Bogle, Lloyd Isgrove and James Vaughan to become the sixth person to sign the dotted line and join the blue army.
In the clubs statement manager, Kenny Jackett said "He’s an exciting young player who can be used on either side and impressed at this level with Blackpool last season. But he’s been a bit frustrated at Birmingham and that’s because of the standard of wingers they have at the club."