McLeish ups the stakes as he tries to bring Everton's McFadden to Birmingham

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• More Premier League news

Former Scotland manager Alex McLeish is determined to sign the 24-year-old forward and the latest offer could be enough to prise him away from Goodison Park.

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Target: McFadden is at the top of Birmingham boss Mcleish's shopping list

Despite a lucrative new contract being on offer, he wants regular first-team football.

McLeish, though, is set to seal his first January capture by signing Hibernian left-back David Murphy Former Middlesbrough defender Murphy was yesterday heading to Birmingham for talks after Hibs had initially turned down a £1m bid.

Birmingham are thought to have increased their offer to around £1.5m to clinch the deal.

Sunderland want unsettled Birmingham midfielder Olivier Kapo, who joined the Midlands side in the summer.

Sunderland boss Roy Keane has also not given up on Reading winger Stephen Hunt and is expected to return with a final £4m bid.