Town target Daryl Murphy is in talks regarding extending his contract with Eirecom League side Waterford United. Murphy had a trial with the Blues in December and is set for a second spell at Portman Road once he is over a groin injury.
Murphy's current deal with Waterford is up at the end of the Irish season in November. Waterford, Murphy's hometown club, are hopeful that they can get him to sign for longer to prevent him leaving on a Bosman at the end of his current contract.
A number of meetings have taken place between the player and the club with a view to agreeing new terms.
Town are keen to see the Irish U21 striker in action, his first spell having come to an abrupt end due to the groin injury.
The former Luton trainee said last week that he will return to Portman Road once he is over the fitness problem and is confident he will do enough to win a deal with Town.
Waterford are anxious to realise a fee for Murphy, whose career has really taken off since he moved back to Ireland in 2002 after his time with Luton.
Irish reports say Waterford value Murphy at around the £200,000 mark, while the Blues would want to pay considerably less or even land the frontman on a free transfer.
Murphy scored 22 goals in all competitions in 2004, has been nominated for the Professional Footballers' Association of Ireland (PFAI) Young Player of the Year award and the Soccer Writers' Association of Ireland Personality of the Year gong.
The striker, who has also interested Manchester City, was named in the Irish Premier Division Team of the Year.