Town chief Graeme Jones feels that the addition of Croatian international goalkeeper Simon Sluga shows the sort of players Luton are in the market for ahead of the Championship campaign.
Sluga joins the Hatters having played 35 times for HNK Rijeka as they finished runners-up to Dinamo Zagren in the top flight of Croatian football last season.
He also made his international debut for the Croatia senior side in a friendly against Tunisia last month, having represented his country through U17 to U21 level.
Jones, who has James Shea, Marek Stech and Harry Isted on the books at Kenilworth Road, told the club's official website: "I’ve been very impressed with the goalkeepers that we have at the club now, but I feel that we need to get stronger in that area with the idea of letting Harry Isted go out on loan and get some experience.
"I’m delighted to break the club record fee with signing a current Croatian international, who is basically second choice for the country who 12 months ago were playing in a World Cup final.
"That shows the pedigree of players that we’ve been scouting throughout Europe since March.
“We’ve looked at all markets and seen Simon live several times.
"He’s incredibly athletic and powerful. He’s an excellent footballer – an 11th player for us – and he has a fantastic presence and great reflexes.
"He’s brave, focused and driven.
“At 26 he’s a great age and having had a previous youth career with Juventus, he has good experience behind him now with over 150 senior appearances to his name.
“He’ll still need a period to get used to the English game, and obviously British culture.
"But we are hoping that we give him a microwave period over the next two-and-a-half weeks and he’ll be ready to compete for his place for the first game of the season against Middlesbrough.”