Butland came through the youth ranks at St. Andrews, making 46 Championship appearances for the club before earning a move to Stoke City in 2013.
During his time with the Blues, the now 29-year-old spent two spells out on loan at Cheltenham Town.
Here, we’ve gathered everything we know about the deal so far, and weighed up whether a reunion is likely this summer.
What do we know so far?
News that Butland could be heading to St. Andrews this summer emerged via reporter Alan Nixon’s Patreon.
On the platform, Nixon revealed that Blues boss Lee Bowyer is keen to find a new number one goalkeeper this summer, with Butland his first choice target.
Having been reduced to a back-up role at Selhurst Park, Butland is said to be keen to once again establish himself as a number one shot-stopper somewhere next campaign, and Bowyer is hoping to convince the 29-year-old that a step down to Birmingham in the Championship could prove him with what he is looking for.
Bournemouth and Rangers are also reportedly keen on a move for the goalkeeper, although neither have yet made a concrete offer for his services.
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Is it likely to happen?
This is genuinely one of those transfers that could go either way, with reasons to be optimistic it could happen and reasons to be pessimistic.
First, on the optimistic side, given his ties to Birmingham City, if Butland were to be open to dropping down to the Championship, you would have to think he would favour a move to the Blues.
Having only featured for them in one season, the 29-year-old may feel that there is a sense of unfinished business at St. Andrews.
Likewise, another reason to be optimistic is that Crystal Palace are said to be nearing a deal for West Brom keeper Sam Johnstone, who is leaving the Baggies on a free this summer.
With Vicente Guaita already on the books, and Johnstone set to arrive, Butland would surely be allowed to depart Selhurst Park.
Whilst the above reasons suggest there is a chance that a deal could happen, Rangers and Bournemouth interest in the keeper could complicate things.
Bournemouth can offer Premier League football, meanwhile, Rangers are set to compete in the qualifying stages of the UEFA Champions League.
Either of those options could potentially give Butland a better chance of getting back in to the England fold, compared to a move to St. Andrews.
It remains to be seen whether or not Butland would be first choice at either of those clubs, though, which again further strengthens the chances of him ending up at Birmingham City next season.