Watford forward Diego Fabbrini is undergoing a medical at Birmingham City after the player ended his loan spell at Middlesbrough, HITC Sport understands from sources close to the club.
Birmingham have lined up a move for Fabbrini with Blues boss Gary Rowett a big admirer of the skilful attacker having had him on loan at St Andrew's last season.
Fabbrini played five games for Birmingham last season and they were hoping to land him last summer only to lose out to Middlesbrough for his signature.
After a bright start to his loan spell at Middlesbrough Fabbrini has found himself out of favour in recent weeks, starting just one Championship game since the win over Huddersfield in November.
Middlesbrough are happy to end Fabbrini's season-long loan deal early to allow him to move on and they have already brought in a replacement in the shape of Gaston Ramirez on loan from Southampton.
Watford are willing to let Fabbrini on a permanent basis as he is well down the pecking order at Vicarage Road and Birmingham have agreed a fee of £1 million for the Italian.
If Fabbrini successfully comes through his medical at St Andrew's he will become Birmingham's third signing of the January transfer window following the arrivals of Will Buckley and James Vaughan.