The 20-year-old’s deal with the Blues was set to expire at the end of the season, however, he failed to progress from the early promise he showed at the club.
The Republic of Ireland Under-21 international had a prolific first campaign with the St. Andrews’ academy where he scored more than 30 goals to earn himself a three-year contract.
However, injuries hampered his chances of making the step up to the next level and was sent out on loan with spells at Cliftonville and Derry City.
Hale will now join Northern Ireland outfit Crusaders.
A lot was expected of Hale and there will surely be a sense of disappointment that things did not work out as they would have liked.
The 20-year-old, who has managed to progress through the international ranks, had a promising start in the youth ranks which would have excited those at Birmingham.
However, it is unlikely going to affect how the Blues perform in the Championship this year as Garry Monk looks for his side to challenge for a playoff spot.
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