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Murray is the third former Hibs player to make the move to Ayrshire after Stephen McGinn and Jason Naismith joined the club. He spent last season on loan at Dunfermline Athletic, scoring six goals in 29 games including a Betfred Cup brace against Killie at Rugby Park.
Speaking to the club’s website the 22-year-old said: “I’m delighted to join Kilmarnock.
“I felt it was the right time to take on a new challenge and the size of the club means I think this is the perfect place for me to be.
“I like to get on the ball and make things happen including chipping in with goals. I like to play passes, be direct and get balls into the box.”
Boss Wright added: “Fraser is someone I’ve been aware of since he broke onto the scene at Hibs. He had other options but he made it clear that he wanted to come here.
“He’s a good age, has ability, is quick and goes past people. He’s got experience in this league so nothing will be new to him and is part of that blend of youth and experience that we’re building here.”
Murray scored four goals in 30 appearances for Hibs’ first team and was part of the Under-20 side that won a league and cup double in 2018. He was capped by Scotland at Under-19 level while at Easter Road.
Hibs’ Sporting Director Graeme Mathie confirmed the club would retain an interest in the player’s progression, adding: “Fraser has been part of Hibernian for a number of years now and is an Academy graduate who has progressed to making 30 appearances in the first team.
“He’s a very popular member of the squad who is well liked by everyone at HTC. The opportunity for him to join Kilmarnock and – most importantly – to have the opportunity to play regular first-team football was one we all agreed was right for him at this stage in his career, with Hibs retaining an interest in his progression.
“Everyone at Hibernian wishes Fraser every success for the next stage in his career and is thankful to him for his contributions to the club since he joined as a youth.”
Meanwhile, former Hibs winger Alex Harris has joined Lowland League side Berwick Rangers, signing a two-year deal with the option of a third.
The 26-year-old was most recently with Edinburgh City and made more than 30 appearances for the Citizens following spell with Dundee, Queen of the South, Falkirk, and York City.
Harris will team up with fellow ex-Hibees Jordan Sinclair and Lewis Allan at Shielfield Park.
Manager Stuart Malcolm said: “Alex is a very talented, exciting player and I’m very happy that we’ve been able to bring him here.
“With 60 appearances for Hibs and over 40 games played in the top flight, it’s clear that he is a player of real quality and, importantly, he has a lot of experience.
“I’m sure the fans will be looking forward to seeing him in action.”
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