Town are one of a number of clubs tracking Watford striker Heidar Helguson, according to sources in his home country of Iceland. Stoke City, West Ham and Crystal Palace are also said to be interested in the frontman who has scored 19 goals this season.
Helguson, 27, has one year left on his contract with the Hornets and would therefore cost the Blues a fee, perhaps somewhere around the £300,000 mark.
Capped 33 times by Iceland, Helguson has scored five international goals. He joined Watford from Norwegian club Lillestrom for £1.5 million in August 1999 and has made 198 senior appearances during his time at Vicarage Road, scoring 63 goals.
Town are likely to be in the market for new forward regardless of which division they are in next season, with Pablo Couñago on his way out of Portman Road at the end of his contract in June and Darren Bent likely to leave for the Premiership if the Blues fail to win promotion.
Manager Joe Royle has already indicated that he intends to sign Waterford United striker Daryl Murphy in the summer if the cash is there and the player is still available. However, it's looking increasingly likely that newly promoted Sunderland will secure Murphy's signature.
The Irish U21 international says he is keen for his future to be resolved quickly: "I haven't heard anything yet but hopefully things will be sorted out soon because it's kind of dragging on.
"It's going to be a massive step up but even training with the lads over there gave me a huge confidence boost."
Meanwhile, former Blue Darren Ambrose says he is aware of Town's interest in him but is currently focused on life with Newcastle: "I've heard about the Ipswich link, but it's not something that's crossed my mind.
"I'm just concentrating on playing my football until the end of the season. That's all I want to do at the moment. I'm playing here again and I'm very pleased with that.
"I don't want to look too far ahead. After such little football, all I'm hoping is I stay in the side for the next game. I'll be happy to keep my place in the side until the end of the season."
Ambrose, who would reportedly cost the Blues £1 million, has also been linked with Aston Villa and Charlton in recent days. The midfielder would only be within Town's price range if promotion to the Premiership is secured.