Birmingham are set to sign Everton midfielder James McFadden for £5 million.

The Guardian says McFadden is expected to complete a £5m move to Birmingham in time to feature against Chelsea at St Andrew's on Saturday.

Alex McLeish has failed with two bids for the Scotland international - the most recent valuing the player at £4m - but sources indicate the Birmingham manager is ready to return with an improved offer that will see Everton receive £5m up front for the 24-year-old and another £500,000 in add-ons.