Birmingham have moved closer to signing Everton striker James McFadden after agreeing a fee of around £5million for the player.

Blues had two previous bids of £2.5m and £3m 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.

It will reunite McFadden with Birmingham boss Alex McLeish, who worked with the player when in charge of Scotland.

McLeish said: "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."

The arrival of McFadden will be the second addition to the squad in 24 hours as yesterday McLeish agreed a £1.5million deal for Hibernian full-back David Murphy with the player just having to pass a medical before completing his move.

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 £2m move last summer.

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