Boss Joe Royle says he is "very, very hopeful" that the Blues will sign Cardiff City striker Alan Lee on a permanent deal next week. The two clubs are currently negotiating a fee for the Irish international.

Royle said: "The chairman is talking with the chairman of Cardiff about Alan Lee. They have had a dialogue and we're hopeful for next week but no more than that at the moment. It'll be a permanent deal with money changing hands.

"He caused us a lot of problems when he was at Rotherham. It's a lot like the position Shefki was in really, it's not quite worked for him at Cardiff, where his goalscoring record has gone a bit fallow, but he hasn't had a lot of starts recently.

"He's young enough, strong enough and good enough. He first caught my eye at Burnley coming on as a substitute when I was working in the North. He's not shy of work, he's 6ft 3in, and we've needed a physical presence in the opponents' box since Shefki left."

Lee, 27, started his career with Aston Villa and during his time at Villa Park spent time on loan at Torquay United and Port Vale. The Galway-born frontman joined Burnley in July 1999 for £200,000, scoring one goal in four starts and 16 substitute appearances.

Just over a year later he moved to Rotherham for £150,000, after a successful loan spell, where his 41 goals in 115 starts (plus seven appearances from the bench) led to an £850,000 switch to Cardiff in August 2003, with Norwich City also making a bid.

Things haven't gone so well at Ninian Park, his two-and-a-half year stint bringing just 12 goals in 55 starts and 40 sub appearances, one of those coming in Town's 3-1 victory over the Bluebirds at Portman Road in August 2004.

Previously a regular with the Irish U21s, Lee won the first of his seven full caps against Norway at Lansdowne Road in April 2003 but is yet to score an international goal. His most recent cap came against Cyprus in September 2004.

Earlier in the season, Lee was linked with a loan move to Town but at the time Bluebirds boss Dave Jones was unwilling to allow him to leave.

Royle says that starting to pay fees for players indicates a change in the club's position: "This season, having spent the £450,000 on Sam Parkin and the £300,000 on Gavin Williams, there is a turnaround in the finances of the club.

"We're still not flush, we're still not going to be spending silly money on players, but we are back in the game and, despite the negative attitudes of some, the club is making progress."

Royle has confirmed that, as TWTD reported earlier in the week, Ricardo Fuller has turned down the chance to join the Blues as he wants to stay at Southampton and fight for his place.

The Town manager says the Lee deal will leave enough money to bring in one more player during January. Initially, a left-back had been targeted but the re-emergence of Scott Barron after his year out with injury has Royle thinking twice about investing in that area of his side.

Another striker is a more likely and Royle has not ruled out a second enquiry about out-of-favour Manchester City striker Robbie Fowler: "Never say never in football. I don't know what Robbie's position is at the moment but other people seem to think they might get him. I will admit I asked Stuart Pearce about him and the answer was no, but I wouldn't guarantee one way or the other what we're going to do there."

More trialists are expected at Portman Road before the January transfer window ends.

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