Birmingham will sign Villa central defender Liam Ridgewell and Fulham left back Franck Queudrue.
Blues had a £2 million bid for Ridgewell discarded in January and also failed with an attempt to take him on loan before the transfer window closed.
It is thought a £2.5 million offer is in the end set to persuade Villa manager Martin O'Neill to part with the 23 year old.
And Birmingham must splash out the same amount to seal the transfer of the 27 year old Queudrue.
Ridgewell will be the 1st player in the last decade to make a permanent switch between the 2 fierce Birmingham rivals.
The need to have a greater chance of playing 1st team football has persuaded Ridgewell to make the transfer to St Andrews.
And that has left Villa manager Martin O'Neill viewing Norwegian international Brede Hangeland as a probable replacement for Ridgewell.
The 26 year old defender has also been linked with a transfer to Newcastle and is probably going to cost £4 million.
Birmingham manager Steve Bruce has stressed his wish to strengthen his defence, particularly with left back Mat Sadler and central defender Rafael Schmitz injured.
He said, "At the moment my priority has to be at the defensive end of the team. Mat Sadler has got a knock and we have not really got anybody to replace him. In the centre back area we have only got 2 at the moment, apart from Rafael Schmitz, who is also injured. That is not very healthy either and we are looking at those 2 positions."
Quedrue's arrival will also have given Bruce competition for places in the left back berth, where his only choice at present is Matt Sadler, who is presently injured.
The Frenchman has a number of Premier League experience to call upon following his transfer to the Riverside Stadium from Lens 5 years ago.
He spent 4 seasons on Teesside, helping Boro win the League Cup in 2004 as well as the final of the Uefa Cup 2 years later before moving to Fulham last summer.
Newcastle have also been linked with Queudrue however Bruce appears to have beat everyone for his signature.
01 08 2007
Kieron Dyer's Newcastle career is in tatters after his house was attacked by angry supporters throwing eggs.
And Dyer's car windows were struck as he faced a barrage of abuse as he left St James' Park after Newcastle's 2-0 triumph over Juve Sunday.
Some Newcastle fans were angered by the England midfielder's wish to transfer to a club in the south to be nearer his young family in Ipswich.
Persistent Injury, fights with teammates and a refusal to played out of position have strained Dyer's relationship with Newcastle supporters in the 8 years since his £6 million move from Ipswich.
Dyer, 28, is looking certain to leave however only The Hammers have tabled a bid, thought to be around £4 million. However, Newcastle manager Sam Allardyce would like more before talks can start. Dyer's preferred choice remains Spurs, however their salary cap is around half of the £80,000-a week he picks up at St James' Park.
Midfielder Didier Zokora was mentioned as part of a probable swap deal, whilst Allardyce is also closing on FC Copenhagen's Brede Hangeland. The Newcastle manager is also expects to have Michael Owen available for selection at Hull tonight, however does not think the England forward will be 100 per cent fit for the season's kick off at Bolton next week.
Albert Luque mentioned that he cannot afford a repeat of the previous 2 seasons in which he has started only 6 Premier League games. 'For me it is an important year,' he added. Meanwhile, Newcastle have opened contract talks with Obafemi Martins designed to remove the get out clause that allows the forward to leave if a club offers £13 million.
