Sources: Bristol City working on last-gasp deal to sign Birmingham City defender
The Blues are fighting the drop in the Championship this season.
They currently occupy 20th place and could fall into the bottom three should Rotherham or Sheffield Wednesday win their games in hand.
Bristol City meanwhile are pushing for a playoff spot and are just three points off the top six.
If Dean Holden’s side were able to get a deal over the line, Pedersen would need to usurp Tommy Rowe in order to break into the starting XI.
Rowe has started 21 of 26 matches in the league this season but is now 32 and Bristol may be looking to the long-term with the approach for Pedersen.
Pedersen began his career in the Danish lower leagues before signing professional terms with HB Køge in 2014.
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There he played for two years before catching the eye of then-2.Bundesliga outfit Union Berlin.
Union narrowly missed out on promotion in both the 2016-17 and 2017-18 campaigns with Pedersen a vital cog at left-back.
After two seasons and 64 appearances in the German capital, Pedersen moved the West Midlands in 2018.
In two and a half seasons at St. Andrew’s, the one-time Danish international has featured 104 times, scored five goals and registered five assists.