Nottingham Forest saw off competition from Southampton, Crystal Palace, Tottenham Hotspur, Celtic and Rangers to land one of British football's most sought-after young talents.
The deal is structured as training compensation — the standard mechanism for international transfers involving players under the age of 18 — and comes in at under £100,000.
Fraser, who has already earned caps for the Scotland Under-16 side, has signed a long-term contract with the Premier League club running until the summer of 2029, when he will turn 20.
Romano confirmed the move via social media on Thursday, stating that the medical had passed and everything was agreed between Forest and Hearts. The speed of the conclusion surprised some in the market, with Southampton having reportedly been in advanced discussions as recently as last month before Forest came in with a decisive late bid.
The volume and quality of interest in a 16-year-old — from clubs including Tottenham and both sides of the Old Firm — reflects the regard in which Fraser is held within Scottish football at such an early stage of his development.
For Forest, the signing continues a pattern of identifying and acquiring young British talent before bigger clubs can formalise their interest. The Premier League side have been active in this market in recent windows and view the academy pipeline as a core part of their long-term planning.
Hearts will receive a training compensation payment for developing Fraser through their youth system. The Edinburgh club have a record of producing players who attract significant attention from the English top flight, and this deal follows that pattern.
Fraser will link up with Forest's academy setup immediately and will be aiming to progress into the first-team picture over the life of his contract.