Kasey Palmer spent the first part of the season on loan at Premier League newcomers Huddersfield Town, however earlier this month Chelsea recalled the youngster in order for the midfielder to get more minutes.
The 21-year-old had spent the last 18 months with the Terriers but after picking up an injury, he failed to cement a place in the Huddersfield side.
Chelsea called him back for Palmer to find a new club and according to the Sunday People, reported by the Express, Birmingham City are leading the race to sign the midfielder.
The Championship strugglers are second bottom in the league and face stiff competition for Palmer from both of the Sheffield sides.
The England U21 international could be the difference in the bid to stay up in England’s second tier, and a loan move to be centre stage could be the answer for Palmer.