Everton to Let Mcfadden Go As Birmingham Stump Up £5m

James McFadden is expected to complete a £5m move from Everton to Birmingham City 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.

Martin O'Neill will hold talks with Martin Laursen in the next 24 hours, with the Aston Villa manager confident that he can persuade the central defender to commit his long-term future to the club. Laursen's contract expires in the summer and, although Villa were initially slow to initiate discussions about a new deal, the club are now keen to retain the Denmark international who has been outstanding this season. Laursen is expected to be offered a new three-year contract.

With Olof Mellberg likely to leave Villa Park on a free transfer in the summer, O'Neill wants to procure a right-back and Pascal Chimbonda's position at Tottenham is being monitored. The Irishman has identified another potential defensive recruit although reports linking the Steaua Bucharest player Dorin Goian with a £5m transfer to Villa are believed to be wide of the mark.

With the prospect of Championship football looming large at Pride Park, Derby County are resigned to losing Giles Barnes although his valuation has plummeted. Derby were demanding £5m for the midfielder last year but he is expected to leave for around half that sum. West Ham are interested in the player although Aston Villa also watched the 19-year-old last weekend. Barnes will move in the summer if nothing can be agreed this month.