Blues losing Ryan Babel to Wolfsburg

Birmingham are set to be pipped to the signing of Liverpool winger Ryan Babel by Wolfsburg's former England boss Steve McClaren.

The 22-year-old Dutch forward has failed to live up to the £14million price-tag which former Liverpool boss Rafael Benitez paid Ajax for him in the summer of 2007.

With Babel clearly not a part of new Reds boss Roy Hodgson's plans at Anfield, it is certain that he will be sold before the transfer window shuts on August 31.

Blues manager Alex McLeish was thought to be pondering a swoop for the player to bolster his squad at St Andrew's for this season.

But 2009 Bundesliga champions Wolfsburg, where McClaren took over this summer, are leading the chase for Babel and are set to snap him up for around £8million.

McLeish could be set to miss out on another target, as Sunderland are now eyeing Wigan's unsettled winger Charles N'Zogbia.

The newly-capped France international is reportedly keen to leave the DW Stadium before the close of the transfer window, following 18 months with the Latics.

Sunderland boss Steve Bruce was the man who brought him to Wigan and is keen on a reunion with the 24-year-old.

Bruce has money to spend in the transfer market following Kenwyne Jones' sale to Stoke City and is ready to make a move for N'Zogbia.

Wigan chairman Dave Whelan is reportedly willing to let N'Zogbia go before August 31, providing the club receive the right offer.

But Sunderland could face competition for the former Newcastle winger from Marseille and Stoke.

Blues failed with a bid at the start of the summer and are reportedly still keen, while Stoke manager Tony Pulis is aiming to follow up the capture of Jones with further signings.