Blues line up new bid for Ryan Babel

Birmingham are lining up an £8million bid for Liverpool winger Ryan Babel after reviving their interest.

Reports have again linked Blues boss Alex McLeish with the Anfield misfit, whose future on Merseyside is in new doubt after Rafa Benitez's exit as manager last week.

Birmingham were in the hunt for the Holland international in January but Liverpool rejected a £9million offer, hoping to recoup the £11.5million they paid Ajax in 2007.

But with their cash crisis showing no signs of ending, they could be forced into accepting a lower bid just to ease their money woes.

McLeish has made no secret in his desire to bolster his frontline and has already signed giant Serbian striker Nikola Zigic from Valencia for £6million.

Argentinean striker Mauro Boselli is another on the radar but Blues face competition from Wigan, who are believed to be heading the queue for the Estudiantes hitman.

McLeish is also believed to be tracking Hamilton's James McArthur, but again will have to fight it out with the Latics.

The midfielder's agent Willy McKay claims Blues are interested in bringing the highly rated 22-year-old to St Andrew's.

He said: "Alex McLeish watched him against Rangers last season and he was outstanding. He scored a great goal and ran right through their midfield - and Rangers have a good midfield.

"If you consider Barry Ferguson went down to Birmingham and did so well, it's a no-brainer about whether they would want to sign James."