Blues winger Cameron Stewart is reported to have won his compensation claim against his former loan club Leeds United.
According to the Yorkshire Evening Post, sources close to Stewart have revealed that the 24-year-old will receive at least £500,000 in compensation from the Elland Road club.
Stewart and Leeds signed a three-year deal which was due to come into effect last summer at the end of his contract with Hull City following a 93-day loan with the West Yorkshiremen.
However, by the time the contract was lodged with the Football League not all the signatories were still at the club, including former managing director David Haigh, who had moved on in the April after falling out with club president Massimo Cellino.
Cellino then refused to get the paperwork re-signed, pulled the plug on the deal and subsequently claimed that the contract was invalid.
The matter went to an FA arbitration hearing last month with Stewart claiming the West Yorkshire club owed him £800,000 in unpaid wages, the difference between the cash he is being paid at Town and the higher sum he would have received under his Leeds deal.
After his move to Elland Road broke down Stewart joined the Blues, signing a three-year contract.
However, having broken his jaw late in pre-season, the former Manchester United trainee was unable to win a place in the side and his only Blues appearances to date are the two sub appearances in the FA Cup ties against Southampton.
In March, the Mancunian joined League One Barnsley on loan for the remainder of the season. He made three starts and one sub appearance before the Tykes fell out of the running for a play-off place and in order to save cash opted not to continue to field loanees such as Stewart.
Speaking shortly after his move to Oakwell, the former England U17, U19 and U20 international said he hoped he had a future at Portman Road but admitted that he might have to find another club in the summer.
"I’d like to think [I have a future at Ipswich]. Until somebody tells me no, I’ll try and chase that but I think you’ve got to be realistic sometimes and when things don’t go as well as they [might], sometimes you’ve got to be prepared to move on.”
Meanwhile, former Blues striker Frank Nouble has been released by League One Coventry City, who are managed by ex-Town skipper and coach Tony Mowbray.
Nouble, 23, joined the Sky Blues on a half-season contract in January after his Town deal was settled following a loan spell at the Ricoh Arena.