Blues owners Trillion Trophy Asia are set to announce Harry Redknapp’s replacement in the ‘next 24 hours’ according to Mirror Sport.
This news comes after Karanka was turned down after being interviewed at the club. It is understood talks broke down between Blues and the former Middlesbrough boss.
The 44-year-old was due to watch Blues in action at Hull City.
Steve Cotterill is now the hot favourite to take over after giving Redknapp a helping hand in survival last season.
The 53-year-old turned down an offer to become his assistant boss in May, with an ambition to land a full managerial role. He did, however, say he would be ‘willing to return’ to St Andrews if the chance came.
Cotterill feels he never got the credit he deserved for drilling the team and guiding them to grind out results and he was sorely missed by the fans.
A change at the top is expected to be finalised before the International break. Keep up to date with the latest @bcfcfollowers