The 24-year-old, previously at Huddersfield Town, will formally join on July 1 after his current deal with the Terriers expires.
Blues boss Lee Clark is well aware of Novak's capabilities having plucked the free-scoring Geordie out of non-league to sign for Huddersfield back in January 2009, before he was loaned back to Gateshead as part of that transfer.
Novak's goals helped fire Gateshead into the Conference National, picking up the club's Player of the Year accolade in the process, at the end of the 2008/09 season and he went on to become an important member of the Huddersfield side that eventually gained promotion to the Championship in 2012.
Schooled at the famous Wallsend Boys Club in Newcastle, Novak turned down a new contract with Huddersfield and will now seek a fresh challenge at St. Andrew's.
And Clark feels that it won't take long for his new recruit to become a crowd favourite with Bluenoses.
"Lee's looking to progress and coming to Birmingham City is another progression in his career," Clark told bcfc.com.
"The Blues crowd will take him because they'll see the work ethic of the player. They'll see everything that he gives and he'll quickly establish himself as a popular player with the fans.
"I gave Lee his opportunity in the Football League and for three years he was absolutely magnificent for me. He was what you call the second striker and played the role just off Jordan Rhodes.
"He's strong and he gets goals. We're looking forward to getting him on board with what we're trying to do here and I know he understands the way I want to play the game.
"I think he'll fit in really well with the new group we're putting together."
A full and exclusive BluesTV interview with Novak will follow on bcfc.com shortly.