Town are reported to have made a cash bid to sign on-loan midfielder Gavin Williams from West Ham. Welsh international Williams joined the Blues on in November and has started every game since making his move to Portman Road.
The offer doesn't come as a surprise with Joe Royle saying earlier in the month that talks were under way: "West Ham have given us a price guide, but we'll have to wait and see. There would need to be a change in finance for us to do so."
That change is likely to have been the home FA Cup draw with Premiership Portsmouth. The Blues budget for no income via the cups - a draw away at a lower division side is worth virtually nothing - with last year's Bolton cup game partially making up the £250,000 paid to Brighton for Darren Currie.
The 25-year-old cost the Hammers £250,000 from Yeovil this time last December and Alan Pardew's club will hope to recoup a significant part of that fee from Town. It is likely Williams, who has another three years left on his Hammers deal, will have to take a pay cut to move to the Blues.
Joe Royle is also continuing to look for strikers with Sam Parkin, Adam Proudlock and Billy Clarke all sidelined with injuries: "We are looking at trialists from all over the globe but that is all we have. We are hoping that Adam Proudlock will be fit in a week or so but that is where we are."
Royle has also revealed that he made a loan bid for Arsenal winger or striker Quincy Owusu-Abeyie earlier in the season but the Gunners were unwilling to allow the Dutchman to leave.