Birmingham are set to complete their first signing of the January transfer window with Hibernian full-back David Murphy moving to St Andrews in a £1.5million deal.
Murphy has agreed personal terms with the midlands club and will sign a three-and-a-half-year contract with a two-year option, subject to him passing a medical tomorrow.
Birmingham manager Alex McLeish had one bid turned down for Murphy but now the two clubs have reached agreement to sell the player.
McLeish has been keen to strengthen his defence and will be well acquainted with Murphy's potential from his time as manager of Rangers and then Scotland.
Murphy's arrival will place a question mark over the future of Franck Queudrue who has had an inconsistent season since arriving from Fulham last summer.
McLeish is also hoping to complete the signing of Everton striker James McFadden with the two clubs understood to be close to negotiating a fee.
Birmingham have already had bids of £2.5million and £3million rejected by Everton manager David Moyes.