Rangers are reported to have accepted a bid of around £1 million from Town for striker Martyn Waghorn.
According to the Daily Mail, the Blues have fought off opposition from Waghorn’s local club Sunderland, where he began his career, to land the 27-year-old frontman.
Town boss Mick McCarthy revealed on Friday that he was close to landing another striker, having sold Brett Pitman to Portsmouth last month.
At Saturday's game neither McCarthy nor MD Ian Milne would be drawn on the identity of the target - although Milne did reveal it was someone who was a familiar name - but we understand the Blues are expecting to confirm the signing on Monday.
South Shields-born Waghorn came through the Black Cats' youth system and made a handful of Premier League appearances while at the Stadium of Light as well as having spells on loan at Charlton and Leicester before joining the Foxes on a permanent basis for £3 million in August 2010.
The 5ft 10in tall former England U19 and U21 international was loaned to Hull City, Millwall and Wigan while a Leicester player before joining the Latics full-time on a free transfer in April 2014.
He moved on to Rangers in July 2015, signing a three-year deal. While with the Ibrox club Waghorn made 63 starts and 15 sub appearances, scoring 44 goals, 16 of them last season.
During 2015/16 Waghorn, who can also operate in wide areas, helped Rangers to carry off the Scottish Championship and Scottish Challenge Cup. He was also named in the PFA Scotland Team of the Year for the Championship that season.
Waghorn was left out of the 18 for today's 2-1 victory over Motherwell, the Glasgow giants' opening league fixture of the season.
Previously he started the first leg of the Europa League qualifier against Niedercorn from Luxembourg at end of June but was left out of the second match the following week.
The Rangers squad is currently in a state of flux with manager Pedro Caixinha, who was appointed in March, looking to offload a number of players in order to bring in his own recruits.
The Blues have already benefited from Rangers' summer fire sale by signing Joe Garner, the scorer of a debut winner in yesterday's 1-0 victory over Birmingham, back in June.
Meanwhile, MK Dons blog On The Dot claims Town are closing in on the loan signing of young Leicester City winger Harvey Barnes.
The 19-year-old England U18 international spent a successful spell on loan with Milton Keynes in League One last season and is set to be sent out on loan again this season to gain further experience. Barnsley could also be showing interest.
While the addition of a striker has been the Blues' priority, another wideman is also certain to be on McCarthy's wish-list.