However, the Championship outfit are not the only club in pursuit, with Rangers and Bournemouth also casting their eyes over the 29-year-old.
In a career that has predominantly been within the Championship, Butland made nine top-flight appearances last season for the Eagles, playing a deputy role for the most part.
Here, we take a look at three Jack Butland alternatives that the Blues should consider if they are unable to strike a deal for the 29-year-old…
Michael Cooper enjoyed an excellent campaign in-between the sticks at Plymouth Argyle, proving to be one of the brightest prospects in the EFL in the process.
The 22-year-old, who won Player of the Season for the Pilgrims as they narrowly missed out on securing the play-offs, is likely to attract wide-scale interest this summer.
Possessing reflexes and general shot-stopping abilities that would justify a higher level move, he is also a composed figure with the ball at his feet.
Quiz: Can you name which club these 27 ex-Birmingham City players are playing for now?
If it is more experience that they are after, then Burnley goalkeeper Will Norris could be a consideration for the Midlands club this summer.
The 28-year-old, who is being linked with a move to Championship rivals Luton Town, is currently down the pecking order at Turf Moor, however, he does possess the required attributes to play an integral role in the second-tier.
Norris would also represent a cheaper option than the Pilgrims number one.
Southampton are reportedly edging closer to sealing a move for Manchester City goalkeeper Gavin Bazunu.
Regardless of what his next move might be, Birmingham could enquire about his loan services for the upcoming campaign.
An extremely talented goalkeeper, Bazunu ticks all the boxes already, and at 20 years of age, he is progressing at an exponential rate.
Should Southampton sign him, then Birmingham could bridge the gap from League One to Premier League.