The former Huddersfield coach, who was sacked in February after concerns over his ability to take the club into the Championship, is set to replace Chris Hughton at the Blues
Lee Clark is on the brink of being appointed the new manager of Birmingham City.
Goal.com sources have learned that the former Huddersfield manager has agreed to take over at St Andrews after talks with the Championship club.
Although there are no other contenders for the post that became available when Chris Hughton joined Norwich City, Clark has not yet signed a contract and the final details of the deal are still being worked through.
It is understood that the appointment will be made official by Birmingham on Wednesday.
Clark was controversially sacked as manager of Huddersfield Town in February after more than three years at the helm.
He guided the Terriers to 43 domestic games unbeaten and was in contention for automatic promotion from League One, but was dismissed after chairman Dean Hoyle claimed he had doubts over whether he could complete the job.
Clark is poised to become the fourth new managerial appointment in the West Midlands this summer, following Steve Clarke's appointment at West Brom, Paul Lambert at Aston Villa and Stale Solbakken at Wolves.
The former Newcastle midfielder's former colleagues Terry McDermott and Steve Watson, who both worked with him at Huddersfield, are set to join him at St Andrews.