Town have offered striker Alan Lee a new contract after turning down Hull City's second bid for the Republic of Ireland international. Blues boss Jim Magilton is confident of adding a second summer signing to his squad this week.
Magilton says Hull will have to offer significantly more than the £600,000 currently on offer if they want Lee, whose current contract is up next June. Earlier in the week, the club turned down the Tigers' first bid of £400,000.
The Town manager has shown the club's determination to keep last season's 17-goal top scorer by initiating talks regarding new terms: "We have offered him a new deal and we will sit down again and discuss a new contract. At the moment he could go and talk to other clubs in January but he is not like that, although he wants security and we will offer him that.”
Reports in Hull say the Tigers could now look elsewhere for a new striker with manager Phil Brown assessing his next move over the weekend.
Coventry City are yet to firm up their interest in Lee with a bid and Town's valuation above £600,000 could put off potential suitors.
The player himself is understood to want to remain with the Blues, having settled in the area since his £100,000 January 2006 transfer from Cardiff City.
Jim Magilton has reiterated that he expects to land his second signing of the summer early next week and hopes to be able to field the new man in Tuesday's friendly at Stevenage Borough: "We are close to signing a new player. We are confident but you never know with these things until it is signed and sealed.”
Magilton says the new man is neither Tommy Miller nor Birmingham's Neil Kilkenny, who have both been linked with the Blues on a number of occasions this summer.
Meanwhile, Franny Jeffers, whose wage demands saw his move to Town break down earlier in the week, is reportedly a Cardiff City target. Bluebirds boss Dave Jones is claimed to see the former Blues loanee as a potential replacement for Michael Chopra, who joined Sunderland this week.
Jeffers will play for Blackburn's reserves at Clitheroe this afternoon after being left behind as the senior squad departed on their pre-season tour of Germany.
Elsewhere, former Town full-back Gary Croft is on trial at Doncaster Rovers.
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