Jordan James, son of former Hereford United defender Tony James, looks likely to leave Birmingham given the club were relegated to League One last May.
Ipswich are reported to be interested in signing the Welsh International.
The fee could be around £10M.
This from TWTD:
Hereford-born James, 20, came through the ranks at St Andrew’s and won England U20 caps as a youngster having previously played for Wales at U15, U16 and U18 levels, before committing his international career to the Welsh, for whom he qualifies through his father, former Football League defender Tony.
James, who scored Birmingham’s goal in their 3-1 defeat to the Blues at Portman Road in February, has made 54 senior domestic starts and 50 sub appearances, scoring 10 goals.
Former Wales boss Rob Page is a big fan of the midfielder: “He reads the game well, he’s athletic, he likes a tackle, he can pass the ball, he can head it … he ticks a lot of boxes; he has got everything.
“He is a great lad and he wants to work hard. He has got potential and we’re going to help him achieve that.”