Town are reported to have offered Blackpool £550,000 for central defender Curtis Tilt but with the Tangerines said to want £1 million for the 26-year-old.
The Blues were first mentioned in connection with a bid for Tilt late last month before reports of an offer resurfaced on Friday.
"According to the Daily Mirror the Blues have tabled £550,000 but with the Tangerines hoping for an auction to push the fee up to seven figures.
Reading, QPR and Portsmouth are among the other clubs also believed to be eyeing the left-sided centre-half, who has a year left on his contract at Bloomfield Road.
Walsall-born Tilt played in non-league for Halesowen Town, Hednesford Town, AFC Telford Town, Wrexham and Forest Green Rovers (loan) before joining Blackpool last summer.
He made 45 starts for the League One side in 2017/18, his first EFL campaign, scoring once and picking up three Seasiders’ player of the season gongs.
New Blues manager Paul Hurst, who is said to have been interested in Tilt since his time as Shrewsbury boss, is very much in the market for another central defender with Adam Webster having departed for Bristol City.