Boss Mick McCarthy says Luke Varney is closing in on a return to action and negotiations regarding a permanent deal at Portman Road.
The 33-year-old, who was released by Blackburn at the end of June, ruptured an achilles while on loan with Town during the first leg of the play-off semi-final against Norwich City in May and has undergone his rehabilitation with the Blues.
Luke Hyam played his first game for the U21s at QPR at the end of last week having been sidelined since January with a knee injury and McCarthy says Varney, who made seven starts and five sub appearances for Town last season, scoring once, is also making progress with his recovery.
"He’s slightly behind Luke Hyam, he always was, but he trained with the first team, just in the Friday morning game. He looks fine, he’s coming on,” the Blues manager said.
While it’s expected that having chosen to undergo his rehab with Town - contractually Blackburn were obliged to get him back to full fitness - Varney will sign a deal with the Blues once he’s over his injury, McCarthy it’s not a fait accompli as things stand.
"It’s not quite as simple as that,” he added. "The process is like any other time, I guess. We’ll ask him if he’d like to sign, he’ll say how much are you offering me and we’ll get somewhere in between and if it’s all sorted out, he’ll sign.
"The really nice thing about it is that I would like to sign him and he wants to stay here and he wants to sign. But it’s not as cut and dried as that.
"But he is coming back from a very, very serious injury which, to be fair to him, could finish a player at his age and he’s done remarkably well.
"I’d like him just to get back so he is totally confident with what he’s doing and playing, and we are with him.
"And if we can agree something with him it’ll be great because he’s fabulous lad and a good player.”
Meanwhile, former Blues winger Stephen Hunt has ended his trial at Rotherham without being offered terms.
Manager Neil Redfearn said: "We can’t do anything with Stephen. It’s just how it’s fallen. With the players we have got in as well, we talked about strengthening other areas."