Blackburn are on the brink of signing Brett Emerton after the Australia international completed his medical at Ewood Park.
Rovers are now in talks with the 24-year-old midfielder, who will leave Dutch giants Feyenoord.
Blackburn chief executive John Williams said: “I can confirm that further discussions have taken place and are ongoing. The player himself has undergone a medical and we are making progress.”
Meanwhile another Australian, full-back Lucas Neill, has agreed a contract extension to stay at Rovers until the summer of 2007.
The 25-year-old, who joined from Millwall in 2001, becomes the longest-contracted senior player at Rovers.
Blackburn manager Graeme Souness told the club’s official website www.rovers.co.uk: “Lucas has been on excellent form since the day he arrived.
“He has established himself as a top Premiership defender and naturally I am delighted he has signed this long-term contract.”
Turkish striker Hakan Sukur has rejoined Galatasaray following his release from Rovers.
Sukur struggled to make an impact at Ewood Park after breaking his leg in training within days of moving to Lancashire.