An Italian report claims the Blues and Reading are showing interest in Genoa winger Manuel Milinkovic, who spent 2017/18 on loan in Scotland with Hearts.
According to Tuttomercatoweb.com, the Edinburgh side would like to keep hold of the 24-year-old and the clubs have an agreement regarding a permanent switch, however, the player is unhappy with the contract on offer at Tynecastle.
The report claims the impasse could see other clubs come into the running with Town and the Royals said to be interested.
Blues manager Paul Hurst said at his press conference last week that adding wingers is his priority as he addresses an imbalance in his squad ahead of the new season.
Town director of football Dave Bowman, who is effectively the club’s chief scout, is known to have spent time scouting in Scotland last season.
Antibes-born French-Serbian Milinkovic - sometimes known by his middle name David - played youth football with AS Cannes in France and then Red Star Belgrade in Serbia.
Spells with Rad and BASK, also Belgrade-based sides, followed before he moved on to Italy and Ternana, Salernitana and in 2016 Genoa, where he has a year left on his contract but is yet to make a first-team appearance.
After loan stints with Virtus Lanciano, Messina and Foggia, Milinkovic, who primarily plays in the left but can also operate on the right or up front, moved to Hearts in August last year, scoring six goals in 16 starts and 10 sub appearances.