Brum lead Savage hunt
The firebrand Welsh international is set to be one of a number of departures from the club following their relegation from the top-flight.
Savage has enjoyed five years with the Midlands outfit since joining from Crewe but during the past season, he became a target for vitriol from the terraces.
He was pilloried by opposing fans for his play-acting, but his committed displays for The Foxes were one of the few bright spots in a dismal season.
Though he has hinted he would be willing to stay in the First Division, Leicester's cost-cutting exercise means he is a very saleable asset.
The Welshman has already attracted interest from Everton and Rangers, but Birmingham are hoping to steal a march on their rivals.
Blues boss Steve Bruce will be keen to add Premiership nous to his squad for next season and reports suggest he has been able to negotiate a £2 million transfer fee for Savage.
Bruce will now be hoping he can persuade Savage to link up with him at St Andrews as Birmingham aim to avoid a swift return to Division One.