McFadden edges closer to Blues move

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Blues had two previous bids of £2.5million and £3million rejected for the Scotland international but the deal now looks set to go through subject to the player agreeing personal terms with the club and passing a medical.

"I don't like talking about deals before they have been completed and we are still awaiting the player to discuss personal terms and also to pass a medical," said Birmingham manager Alex McLeish.

The arrival of McFadden will be the second addition to the squad in the January transfer window after McLeish also completed a £1.5million deal for Hibernian full-back David Murphy.

McLeish has also been given permission by Aston Villa manager Martin O'Neill to hold discussions with central defender Gary Cahill.

Cahill, who has just returned from a loan spell with Sheffield United, has slipped down the Villa pecking order behind Martin Laursen, Curtis Davies and Zat Knight.

McLeish is desperate to strengthen the heart of his defence and Cahill could be reunited with former Villa player, Liam Ridgewell, who moved across the city in a £2million move last summer.

McLeish also confirmed his interest in taking Argentinian striker Mauro Zarate on loan from Qatar side Al Sadd.