The City keeper, signed by Stuart Pearce from Shrewsbury, lost his first team place following the signing of Shay Given from Newcastle in January and has been touted as joining the Midlands club since Birmingham won promotion to the Premiership in May.
Other reports claim Roque Santa Cruz has joined the blues in a £16.5m deal and City are rumoured to be close to announcing the signing of Argentine striker Carlos Tevez, despite interest form Chelsea.
Whether or not this is true remains to be seen but if the reports are correct, it is a clear indiciation that City are in the business for major honours next season.