Birmingham City are looking to loan out winger Kristian Pedersen this summer, with Derby County a likely destination for the Danish left-back.

According to The Mirror live blog (21:37), the Rams are interested in signing the 23-year-old on loan from fellow Championship side Birmingham.

Pedersen signed a four-year contract at St Andrew's earlier in this summer’s transfer window, signing for an undisclosed fee from German second division side Union Berlin.

The young full-back is thought to be happy at Birmingham, but due to ongoing financial issues, Pederen may not be able to play due to a transfer embargo for Garry Monk’s side, who are free to sign players, but cannot register them.

The Denmark under-23 international’s future is up in the air, but Derby could benefit from the Blues' financial problems and secure the loan signing of Kristian Pedersen before the transfer window closes later this summer.

The Verdict

Birmingham have found themselves in financial trouble, which could lead to them losing one of their top summer signings.

Pedersen has real potential, and will certainly be a great addition to the Derby side, if the loan deal does go through.

It will be worrying times ahead for Monk’s side if these issues continue towards the closing of the summer transfer window, and could have a real effect on the Blues' results in the Championship this season.

Derby and Birmingham fans - What do you make of this? Let us know below...