Reports in Iceland say Town were watching young striker Hjalmar Thorarinsson at the Nordic International U17 Tournament in Sweden last week.
Thorarinsson made his debut in senior Icelandic football at the age of 16-years-and-one-day earlier this year, becoming the second youngest player to do so. Only Eidur Gudjohnsen started his career when younger.
The striker is often compared to Gudjohnsen and has so far scored four goals for his club Throttur Reykjavik.
He netted three for Iceland at the Nordic tournament, his side losing to England on a golden (own) goal in the final. Already there are those pressing for him to be included in Iceland's first-team.
At youth level Thorarinsson scored an average of 2.73 goals per game and has long been regarded as the next big thing in Icelandic football.
When only 14 he spent time at Liverpool as well as Rangers, AC Milan and Barcelona, however, he is understood to want to move to England.
The likelihood is that Town's Sweden-based European Scout Simon Hunt will have been the Blues' representative at the tournament.