Bruce is keen to bolster his squad at St Andrews

The Blues will pay about �400,000 for Kuqi, the younger brother of Ipswich striker Shefki.

The 21-year-old will officially join the club on 1 January 2005 when the transfer window re-opens.

Birmingham boss Steve Bruce said: "He is someone we look to for the future. Maybe in a year or six months time he could contribute for us."

Kuqi spent 10 days on trial at the club earlier in November and will wear the number 14 shirt, vacated by Stern John who moved to Coventry earlier this season.

But Bruce urged fans not to see Kuqi as a direct replacement for Mikael Forssell, who has been ruled out for the rest of the season with a knee injury.

"He's done excellently in the training sessions we've had," he said.

"Although he's a good player, I don't think it would be fair to see him as the next Mikael Forssell because he's not quite ready for that."