Town have accepted an undisclosed bid for Hermann Hreidarsson from West Bromwich Albion and have given the player permission to talk to the Baggies.
Talks are set to start today with the bid reported to be in the region on £4 million, although, given the current state of the transfer market, it could well be less.
Town chairman David Sheepshanks revealed the news: "We have reluctantly accepted an offer for Hermann Hreidarsson from West Bromwich Albion and the player and his representative have been given permission to meet with them to discuss personal terms."
With the finances at Town in a perilous state the Blues are not in a position to turn down bids for their star names. Hreidarsson has become a fans' favourite at Portman Road since joining from Wimbledon for £4.5 million a day prior to the beginning of the 2000/01 season.
If Hreidarsson agrees terms at the Hawthorns it is likely he won't be the last big name departure before the end of the transfer window on August 31st. Skipper Matt Holland seems very likely to join Aston Villa.