Boss Joe Royle has confirmed a weekend newspaper report linking the Blues with a summer move for Manchester United striker Mads Timm. Royle has also denied a claim that he is set to retire at the end of the season.
Timm, 21, is currently on loan at Walsall and is expected to exit Old Trafford when his contract is up in the summer.
The Dane joined United from home town club Odense in August 2002, making his debut against Maccabi Haifa in the Champions League. A loan spell with Norwegian side Viking followed.
The striker was sentenced to 12 months in a young offenders' institute in March 2005 after being found guilty of dangerous driving. Fellow United player Callum Flanagan, sacked after the incident and also jailed, crashed into another car while he and Timm were street racing.
Timm has scored one goal in six games since joining Walsall last month.
Another report claimed that Royle was set to leave Town in the close season to look after his ill wife with Colchester's Phil Parkinson taking over. However, the Town manager says this is nonsense: "Janet is fine and I have no thoughts of leaving."