Jerome Sinclair has passed a medical at Birmingham ahead of a proposed loan move from Watford.
The striker is in line to join City until the summer after making just seven Watford appearances in the wake of his summer move from Liverpool.
Blues boss Gianfranco Zola admitted his interest earlier this week, telling the Birmingham Mail: "He is an interesting player, he has potential.
"We are interested in him. We will see whether it happens because I know that there are other teams looking for him.
"I think he would bring obviously pace, because he is quick, energy but also technically he has good ability. He is the type of player that could certainly help us."
Walter Mazzari has brought in Mauro Zarate and M'Baye Niang to compete for forward places, although a £20m fee has been agreed with Chinese club Changchun Yatai for Odion Ighalo.