Birmingham City are in talks with Ipswich Town over a £2.5million deal to sign Kayden Jackson, Football Insider can exclusively reveal.

This site revealed last week that the 26-year-old was the subject of a failed £2million bid from Bournemouth with Ipswich holding out for a higher fee.

A recruitment source has told Football Insider that Birmingham are in negotiations with Ipswich over paying £500,000 more than Bournemouth.

The Cherries are cash-rich and in the market for a striker, following the sale of Callum Wilson to Newcastle United for £20million earlier this month.

Jackson turned down the offer of a new contract at Portman Road in July with his current deal set to expire next summer.

His contract situation has attracted interest from Stoke City and newly-promoted Coventry City as the race for the Englishman’s signature intensifies.

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The striker’s 32 appearances in League One last season yielded an impressive 11 goals and seven assists as Paul Lambert’s side finished 11th in the division after the campaign was curtailed.

The Bradford-born forward can play across the front line but is most affective when deployed through the middle.

Birmingham, like Bournemouth, have money in the bank this summer following the sale of Jude Bellingham to Borussia Dortmund for nearly £24million at the end of July.

New Birmingham boss Aitor Karanka has signed Jonathan Leko from West Brom, while his former Middlesborough players George Friend and Adam Clayton have joined on frees.

Pep Clotet’s successor is also in need of a striker and has identified Kayden Jackson as that man.

The Ipswich goalscorer came through the ranks Swindon Town and has played for numerous clubs in the Football League including Accrington Stanley, Barnsley, Grimsby Town and Wrexham.

In other Birmingham City news, it can be REVEALED that Luton Town and Wycombe Wanderers have held talks to sign former Birmingham attacker.