Birmingham have had a £6million bid accepted by Tottenham for Ireland striker Robbie Keane, according to reports this evening.
City have reached agreement with Spurs to pay an initial £4 million for the Dublin born Ireland international.
But this could rise by additional £2million via various add-ons and clauses in the deal.
Sources close to Birmingham insist any potential deal for Keane is still in its infancy.
Birmingham have been given permission to hold talks with Keane. But the former Liverpool player has yet to discuss personal terms with the midlands club.
City manager Alex McLeish is a known admirer of Keane, who has been told he can leave White Hart Lane after slipping down the pecking order.
McLeish has continually stressed the need for Birmingham to sign a quality striker.
He is aware a lack of goals has seen them become embroiled in a Barclays Premier League relegation battle this season. Midfielder Craig Gardner is their leading marksman with just five goals.
If Keane does move to St Andrew's he will join up with winger David Bentley, who has moved from Spurs on loan for the remainder of the campaign.
Keane spent the second half of last season on loan at Celtic and has had only a bit part role at Spurs this season.
Birmingham City are in talks with Ireland & Spurs striker Robbie Keane over a possible move to St Andrew's, the club have confirmed.
Blues boss Alex McLeish has made it clear signing a quality forward is his number one priority during the current transfer window.
Keane is the player City are most actively pursuing, although the club are adamant reports he has already undergone a medical are wide of the mark.
It is not clear whether any deal for the Dublin born Ireland international would be permanent or a short-term arrangement.
But sources close to Birmingham indicate a full-time move - in the region of £6million - could be a possibility.
Keane has slipped down the pecking order at White Hart Lane and is desperate to play regular first-team football. He has also recently been linked with a move to relegation-threatened West Ham.
Birmingham's lack of goal power has been the main reason why they have been locked in a survival battle during the first half of the season.
Midfielder Craig Gardner is the top scorer with just five goals and McLeish has become frustrated by his side's inability to convert their chances.
McLeish spent £6million in the summer on Serbia international Nikola Zigic but the former Valencia player is still coming to terms with the demands of the Premier League.
Cameron Jerome has failed to reproduce the form which brought him 11 Premier League goals last season while Kevin Phillips is now at the veteran age of 37.
Keane spent the second half of last season on loan at Glasgow Celtic.
Birmingham are planning to steal Robbie Keane away from the grasp of rivals Aston Villa in a £6million January transfer window swoop.
Tottenham are prepared to listen to offers for Ireland striker Keane during the winter transfer window, with Harry Redknapp valuing the 30-year-old record Irish goalscorer at around £8m.
Villa have had a long-standing interest in the Dublin born player but are reluctant to meet that price. Birmingham are also looking to pay less but are prepared to meet Keane's £65,000-per-week wage packet at Spurs.
Keane has fallen down the pecking order at Spurs but Blues boss Alex McLeish sees him as the perfect partner for 6ft 7in front-man Nikola Zigic.
Ireland defender Stephen Kelly has become Fulham manager Roy Hodgson's first summer capture after leaving Birmingham City to sign a three-year deal at Craven Cottage.
"I'm delighted to have joined a progressive club which has recently achieved its highest ever top-flight finish," the defender said.
The 25-year-old made six appearances while on loan at Stoke last season.
He also played every minute of Blues' unsuccessful fight against Premier League relegation in 2007-8.
Kelly missed much of the early part of last season with a thigh injury and was allowed to leave for a temporary stint with Tony Pulis's Stoke side in February, after the arrival of fellow Ireland international Stephen Carr and Portsmouth's Djimi Traore at St Andrew's.
But he made only two starts for the Britannia Stadium side as he found his way into the side blocked by the solid form of right-back Andy Wilkinson.
He will compete with John Pantsil for the same role at Craven Cottage and will face a similarly tough task to win a regular first-team slot after the Ghana international missed just one game of the west London side's Premier League campaign.
"Stephen is a talented young full-back with experience of playing in the Premier League as well as competing at international level," said Hodgson.
"He will be a useful addition as we look to improve our squad ahead of the start of next season and I am hopeful that we will be able to announce further additions in the coming weeks."
Kelly is a graduate of Tottenham's youth academy and played 44 times for Spurs before heading to Birmingham in a £750,000 switch in June 2006.
Irish midfielder Keith Fahey admits that he is stunned with how quickly Birmingham City fans have turned him into a St Andrew’s star.
Despite having only played a handful of games for his new club, Fahey already seems to be held in high regard by Birmingham supporters. Little over two months ago, the Dubliner was unknown to even the most ardent of Blues fans, yet internet groups in his honour have already sprouted up - including one that takes a swipe at local rivals Villa called: ‘Keith Fahey is better than Gareth Barry’.
His first goal in English football, described as ‘Messi-like’ by Blues boss Alex McLeish and ‘a fluke’ by Fahey himself, last weekend further heightened his reputation in the blue half of Birmingham. And having spent several seasons at St Pat’s Athletic and Drogheda United in the League of Ireland, the modest midfielder admits to being taken aback by the early attention.
“I am a bit surprised, I’ve done alright,” said 26-year-old Fahey. “In the games I’ve come on, I’ve made an impact, I’ve done OK in the games I’ve played and the fluke goal did me favours.
“The fans haven’t seen a lot of me, they’ve only seen me play in a few near-full games and a few substitute appearances so it’s nice. They’re probably just looking out for someone new".
Stoke City have confirmed they are still hoping to sign Birmingham City defender Stephen Kelly, despite the January transfer window closing at 5pm yesterday.
The Football Assocaition gave clubs special dispensation to complete deals which fell foul of yesterday’s poor weather, and City are now waiting to see if the loan deal agreed with Birmingham for Kelly is completed.
A statement published on the club’s official website said: “Stoke City Football Club are hoping to complete the signing Ireland international Stephen Kelly on loan from Birmingham City.
“The necessary paperwork to complete the deal for 25-year right-back was submitted before yesterday’s 5pm deadline. However, due to the adverse weather conditions the player was unable to travel to put pen to paper on the contract.”A deal to sign the 25-year-old on loan for the rest of the season was agreed before Monday's transfer deadline.
However the Dublin born defender could not travel to the Britannia Stadium because of the snow.
Stoke manager Tony Pulis told BBC Radio Stoke: "It's up in the air at the moment but he's been one we've been monitoring for some time."
Kelly played every minute of Birmingham's Premier League campaign last season but has been restricted to just seven appearances this season because of a thigh injury.
Birmingham boss Alex McLeish is hoping that fit again Stephen Kelly will return eager to bounce back from his early season misery.
The Ireland international is back in contention after three months out with a thigh muscle injury.
Prior to picking up his injury, the right-back was forced to play second fiddle to Stuart Parnaby at the start of the season.
Ironically Kelly was Blues’ only ever present outfield player last season yet he has only made one start and three substitute appearances during the current Championship campaign.
Now, with Nicky Hunt having been recalled by Bolton Wanderers, Kelly, for whom Blues rejected a £2.7 million bid from Fulham in the summer, will attempt to outmuscle Parnaby from the right-back berth.
And McLeish now wants to see the hungry Dubliner looking to make amends for his lack of action so far this season.
“Stephen Kelly hopefully comes back with all guns blazing,” said McLeish.
“He will be disappointed at not starting earlier in the season and I think it set him back a wee bit mentally, then, of cours,e he got an injury.
‘‘So I will be looking for Kel to come back and try to give Parnaby huge competition for the spot.
“I think Stephen will be anxious to get his head down and get back into the team, he’s been out for such a while I’m sure that will be his first mission.
“Stephen’s return to fitness has been absolute perfect timing"