The 18-year-old winger was the subject of interest from the two Manchester giants in the summer, but Redmond’s Championship side scared off suitors with a £12m price tag.
But the Midlands side face financial troubles, and could be persuaded to part with the teen sensation for less to ease their difficulties.
Liverpool are also thought to be monitoring the situation, but Premier League champions Manchester City and runners-up Manchester United were the front-runners in the summer, and would likely rekindle their interest for the right price.
Redmond came through the youth ranks at Birmingham, and has impressed Championship watchers with a number of composed performances on the wing for Lee Clark’s side.
The Blues have struggled in England’s second tier, but Redmond, along with fellow academy graduate Jack Butland, has been a leading light.
The young winger has England under-19 caps, and is similar in style to Liverpool starlet Raheem Sterling.