If all goes to plan, Birmingham will show off Forssell this afternoon, having called a press conference at which they have promised to announce their “first major international signing of the summer”.

That man is believed to be Forssell, Chelsea’s Finnish international who was also wanted by Everton.

The 24-year-old had seemed on the brink of a £4.5m (€6.7m) move to Goodison Park until the deal collapsed after the Merseyside club expressed concern over his long-term knee problem.

Birmingham seized on the chance to sign a player they have long admired and managing director Karren Brady was yesterday working on a compromise package with Chelsea chief executive Peter Kenyon.

While Chelsea would rather receive a straight fee for Forssell, Birmingham would prefer a pay-as-you-play agreement or to take him on another loan.

They are mindful of Forssell’s knee condition which meant that his second season on loan was cut short last September after just a handful of appearances.

Forssell was an outstanding success in the 2003-04 campaign when he netted 19 goals for Birmingham – including 17 in the Premiership.

But hopes of forging a partnership with Emile Heskey – signed from Liverpool for a club record £6.25m (€9.3m) last summer – were cut short by the knee complaint which sidelined Forssell for seven months.

Birmingham manager Steve Bruce, who returns from holiday on Friday, has often spoke of his desire to re-sign Forssell if he can prove his knee is capable of standing up to the rigours of a Premiership campaign.

Should Forssell sign today, that might end Bruce’s striker search for the summer.

In the January transfer window, Birmingham agreed a £6m (€8.9m) fee with Newcastle for Craig Bellamy, only for the Welsh player to join Celtic on loan.

Bruce has since switched his target, and he is also negotiating to complete the signing of Deportivo La Coruna forward Walter Pandiani on a permanent basis after a loan spell at City from January.

Bruce’s other main summer transfer target was Chelsea midfielder Scott Parker - also wanted by Everton – although he has made it clear he wants European football, which Birmingham cannot provide.

Tottenham have also been suggested as potential suitors for Parker, who came to prominence at Charlton but has struggled to establish himself at Chelsea.