Former Blues loanee Dominic Samuel is reportedly set to join Tony Mowbray at Blackburn Rovers from Reading having previously played for the ex-Town skipper on loan at Coventry City.
According to The Sun, the League One side have offered the Royals £500,000 for the 23-year-old striker, out-bidding the Blues and Barnsley.
Town boss Mick McCarthy was understood to have been impressed enough with Samuel during his loan spell at the end of last season - in which he made two starts and four sub appearances without scoring having recovered from a broken toe suffered soon after signing in January - to want to bring him back to Portman Road on a permanent basis.
However, speaking on Saturday, McCarthy said no move was in progress to sign the former England U19 international: "At this moment in time, nothing’s happening with that.”
Meanwhile, another ex-Blues loanee, Tom Lawrence, is reported to be a £7 million target of Derby County.
The 23-year-old Leicester man is said to be viewed as a replacement for Tom Ince, who joined Huddersfield last week.