Out-of-contract Crystal Palace full-back Danny Granville has been linked with a move to the Blues. Boss Joe Royle is set to move for a left-back having signed two strikers this week.
However, Granville seems unlikely to be on his way to Portman Road with Palace chairman Simon Jordan saying the former Cambridge United player is close to signing a new deal at Selhurst Park.
Granville's agent Bill Jennings is also confident his player will be remaining an Eagle: "I'm quite positive something will be sorted after this weekend, and we'll go to see Bob Dowie [director of football at Palace] next week.
"Danny is a London boy. He's done his stint up north and would like to stay in the capital."
The Blues would not be able to match the deal offered by the relegated Londoners and the link with Town seems to be speculation based on Joe Royle having bought Granville from Chelsea for £1 million in 1999 when manager of Manchester City.
Elsewhere, Shaka Hislop is reported to be about to join Coventry City. The out-of-contract keeper had been linked with a possible move to Town, although boss Joe Royle has now made it clear he is not now targeting a third stopper.
Former Blue Gus Uhlenbeek has signed a one-year deal with Mansfield Town after turning down a contract at former club Wycombe Wanderers.