Flynn Downes reportedly could be sent out on loan by Crystal Palace if they are successful in their pursuit of the Blues midfielder.
The Eagles have made two offers for the 21-year-old, the first of £1.2 million and the second £1.6 million, over the last couple of weeks.
Both were immediately dismissed by Town owner Marcus Evans with general manager of football operations Lee O’Neill saying yesterday that they were "nowhere near the club’s valuation”.
Downes subsequently made it known he would be interested in the move and handed in a transfer request before Evans spoke to him outlining the club’s position with the Blues in no hurry to sell the midfielder, who joined the academy aged seven.
According to The Athletic, Palace’s attempt to recruit Downes is part of a wider plan at Selhurst Park to bring in younger players to reduce the average age of the squad.
They say Downes wouldn’t be initially be viewed as a player to go straight into their first team but as one for the future who might be cover for those in the senior side or sent out on loan.
If a deal were to be agreed between the clubs - and as things stand they are a long way apart - then the Blues could be interested in Downes returning to Portman Road on loan. However, it seems likely Palace would want the England U20 international to play at Championship level rather than in League One.
Town were previously reported to be holding out for £4 million for Downes, TWTD readers' Player of the Year in 2019/20, and an initial fee at around that level or towards £5 million plus substantial top-up clauses, such as appearance milestones, would almost certainly receive more serious consideration. Claims that the Blues are after £8 million would appear unlikely in the current market.
Downes, who we understand has recently taken on a new agent, is contracted to Town until the summer of 2022 with the club having an option for a further season.
TWTD revealed that Palace were keen on the 21-year-old in early July with their sporting director Dougie Freedman having been at the Blues' game at Blackpool at the end of February as the Eagles continued an ongoing watching brief having first made contact with Town in January.
West Ham, who Downes supports and who he faced in a friendly at Portman Road last Tuesday, also made their interest known to the Blues in January, while Fulham are among the other clubs to have been keeping tabs on the Brentwood-born schemer. Reports of interest from Arsenal are understood to be wide of the mark.