Birmingham City are closing on the signing of Roger Johnson after Cardiff City accepted a bid for the defender.
The Premier League new boys identified Johnson as one of their top summer transfer targets and had been locked in negotiations with the Bluebirds.
The method of payment had been a sticking point over a deal after Cardiff chairman Peter Ridsdale revealed the Championship side wanted £5million for the centre-half.
Blues' initial offer was rejected, but the two clubs have now settled on a deal to enable Johnson to discuss a move to St Andrews.
A Cardiff statement read: "We can officially confirm that we have come to a financial agreement with Birmingham City Football Club for the permanent transfer of Roger Johnson.
"Roger has now been given permission to talk to the newly promoted Premiership side."
Alex McLeish has been among the most active managers in the transfer market since Birmingham secured a return to the top flight, with Scott Dann and Christian Benitez already added to the squad.
Joe Hart is also joining the club on a season-long loan from Manchester City, while McLeish hopes to tie up a deal for Ecuador international defender Giovany Espinoza.
And the imminent arrival of Johnson, who has made over 130 appearances in three years at Cardiff, will further bolster McLeish's defensive options for next season.
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