Southampton forward Sam Gallagher has agreed to join Birmingham on a season-long loan, according to Sky sources.
Sky Sports News understands Gallagher will undergo a medical later on Monday before signing terms on the deal.
Gallagher, who signed a new four-year deal in August, was also wanted by Aston Villa and Derby.
He becomes manager Harry Redknapp's eighth signing of the summer transfer window and third acquisition of the day following the arrivals of Carl Jenkinson and Cohen Bramall at St Andrew's.
The 21-year-old scored 12 goals in 47 appearances last season while on loan at Blackburn.
Gallagher represented Scotland at U19 level before switching his allegiances to England and he has since featured for the Three Lions at U19 and U20 level.