The Sun says the Spaniard has been invited for talks this weekend and will watch the side at Hull on Saturday.
Karanka has emerged as first choice for the post and seems willing to take it after a spell out of the game since being axed by Middlesbrough.
And despite hoping for better offers over the last few weeks Karanka is now realising the lowly Blues may be his best way back into the game.
Lee Carsley was put in caretaker charge and told he had a maximum of six games at the helm.
That run could be cut to three of Karanka says yes after the weekend.