The promising striker will complete a two-year scholarship with the Blues before signing a professional contract for the final two seasons of his contract.
Oldham chief executive Alan Hardy said: “We’re delighted for Danny — he is joining a massive club with fantastic resources which will help him develop his game.
“Talking with Tony, I know he has been impressed with the facilities.
“Danny has four years of security and time is now on his side to develop into an excellent player.
“We may also have an opportunity of taking him back on loan at some stage.”